Shares of Virgin Orbit, linked to British billionaire Richard Branson, plunged in New York premarket trading as a result of a lack of funding, paralyzing the company and putting it on an indefinite hiatus. In a statement on Thursday, Dan Hart’s CEO announced that the majority of employees would be laid off. Only about 100 people will remain working in the company, about 85% of employees will be laid off.
The reasons for the failure, in addition to lack of funding, are a failed rocket launch in January and the possible bankruptcy of Silicon Valley Bank in the United States. If the bankruptcy did have an impact on Virgin Orbit’s financial position, then it could lead to additional difficulties for the company.
Virgin Orbit is a subsidiary of the Virgin Group founded in 2017 that specializes in launching small satellites into orbit using modified airliners.
Virgin Orbit’s stock is now near zero, down 53% since the news of funding difficulties, from $7 a year ago.
In general, the situation around Virgin Orbit looks very complicated and the future is very vague.
