Orbit

Raise

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.</div>



<p class="has-drop-cap">Virgin Orbit, the Richard Branson-founded space company, is halting operations indefinitely and <a aria-label="cutting almost 90% (opens in a new tab)" href="https://techcrunch.com/2023/03/30/virgin-orbit-burns-up-in-uncontrolled-descent/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">cutting almost 90%</a> of its workforce after failing to secure funding. The move prompted a sharp stock decline, with the company’s shares plummeting 40% in premarket Friday.</p>



<h3 id="virgin-orbit-ceases-operations-as-it-fails-to-raise-funding">Virgin Orbit Ceases Operations as it Fails to Raise Funding</h3>



<p>Shares of Virgin Orbit are down as much as 40% in premarket trading Friday, putting the satellite launch service provider at greater risk of bankruptcy after announcing massive layoffs and <a href="https://www.cnbc.com/2023/03/30/virgin-orbit-funding-ceasing-operations-layoffs.html" target="_blank" aria-label="ceasing operations (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">ceasing operations</a> “for the foreseeable future,” on Thursday. The premarket decline comes after Virgin Orbit stock ended Thursday trading 16% lower at $0.34 per share.</p>



<p>According to its filing with the US Securities and Exchange Commission (SEC) on Thursday, Virgin Orbit is planning to reduce 85% of its workforce as part of its cost-cutting efforts. The move comes after the company failed to secure enough funding to remain afloat.</p>



<blockquote class="wp-block-quote">
<p>“Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company.. We have no choice but to implement immediate, dramatic, and extremely painful changes.&#8221;</p>
<cite>&#8211; said Dan Hart, CEO of Virgin Orbit. </cite></blockquote>



<p>Only 100 employees would not be affected by the layoffs, suggesting almost 90% of the workforce is being dismissed. Hart said the move would impact all teams and departments within the company.</p>


<div class="cta-referral">

			<img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async">
	
	<div class="cta-referral__text">
		<p>Join our <a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a> and never miss a breaking digital asset story.</p>

	</div>

</div>


<h3 id="why-is-virgin-orbit-reducing-staff-and-halting-operations">Why is Virgin Orbit Reducing Staff and Halting Operations?</h3>



<p>The decision to halt operations and let go of nearly all of its employees came due to a steep decline in the company’s business, exacerbated after its <a aria-label="LauncherOne rocket failed (opens in a new tab)" href="https://www.space.com/virgin-orbit-united-kingdom-flight-failure-cause" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">LauncherOne rocket failed</a> to reach orbit following its first launch out of the UK due to a “dislodged fuel filter.” The unsuccessful launch put additional pressure on Virgin Orbit’s stock, down over 80% year-to-date.</p>



<p>Earlier this month, the Long Beach, California-based company furloughed all employees and announced an “operational pause” to raise additional capital. The company held talks with venture capitalist Matthew Brown, but the two parties disagreed. Virgin confirmed in the SEC filing that it could not secure new financing.</p>



<p>The company’s move marks another major workforce reduction by a US company in recent months. The layoffs have been particularly noticeable in the tech industry, with <a href="https://tokenist.com/tech-layoffs-continue-as-amazon-plans-to-eliminate-9000-positions/" rel="dofollow" class="deco-link">Amazon</a>, Meta, and Microsoft all reducing staff to cut costs. Tech companies <a href="https://tokenist.com/tech-leads-us-layoffs-with-21387-workers-sacked-in-february/" rel="dofollow" class="deco-link">accounted for 28%</a> of all layoffs in February, reducing 21,387 jobs.</p>


<div class="cta-sub js__cta-sub">

	<div class="cta-sub__start" data-step="1">

					<div class="cta-sub__title"><strong>Finance is changing.</strong></div>
							<div class="cta-sub__subtitle">Learn how, with Five Minute Finance.</div>
							<div class="cta-sub__excerpt">A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.</div>
							<button type="button" class="btn">Try it out (for free)</button>
			</div>

	<div class="cta-sub__form" data-step="2" style="display: none;">
									<script type="text/javascript"
						src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&#038;webforms_id=zw3Wv"></script>
						</div>

	<div class="cta-sub__result" data-step="3" style="display: none;">
		<div class="cta-sub__title">Awesome</div>
		<div class="cta-sub__caption">You&#8217;ve subscribed.</div>
		<div class="cta-sub__greeting">You&#8217;re well on your way to being in the know.</div>
	</div>

</div>



<p><em><strong>Do you think bankruptcy is inevitable for Virgin Orbit? Let us know in the comments below.</strong></em></p>
<p>The post <a rel="nofollow" href="https://tokenist.com/virgin-orbit-down-41-in-premarket-as-firm-halts-operations-begins-layoffs/">Virgin Orbit Down 41% in Premarket as Firm Halts Operations, Begins Layoffs</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Virgin Orbit Down 41% in Premarket as Firm Halts Operations, Begins Layoffs

Table of Contents

TokenInsight

Other articles published on Mar 31, 2023

Argentina’s Flybondi to launch NFT-enabled ‘Tickets 3.0’ that can be renamed, transferred and sold

Elon Musk and Tech Execs Call for Pause on AI Development

RaceFi 1st Anniversary — $1000 for BNB Chain & Solana users

‘Biased, deceptive': Center for AI accuses ChatGPT creator of violating trade laws

USDC Outflows Exceed $10B, Crypto Daily TV 31/3/2023

Prom X BurgerCities

Join our free newsletter for daily crypto updates!