The troubled space company said it was unable to secure additional funding to keep it afloat and has subsequently laid off around 85% of its workforce. Virgin Orbit has done this in order to reduce expenses and focus on satellite launches. However, the company warned that its future is still uncertain.
With Virgin Orbit having filed for Chapter 11 bankruptcy, the future of space travel may now be in question. Attempts to find a new investor have thus far failed, leaving many wondering if space travel will now become a thing of the past. While it is still possible that another company might step up and provide funding for Virgin Orbit, the possibility that such an endeavour may now come to nothing is a sad reality.
Hart’s announcement came after the company announced it would burn through an additional $2 billion this year in an effort to keep up with competition. Hart said that Virgin America and Virgin Atlantic will merge, White Castle will discontinue its relationship with the company, and employees will see their pay reduced by 30 percent. “We have no choice but to implement immediate, dramatic and extremely painful changes,” Hart said during the all-hands meeting.
Jeff Weber, the senior vice president of global communications for Boeing Commercial Airplanes, predicted during a recent interview that the upcoming all-hands meeting scheduled for July 7 will be “probably the hardest all-hands that we’ve ever done in my life.” He elaborated on why he believes this to be the case and what is being done to prepare Boeing employees for what is
This financial blow will undoubtedly have a significant impact on Virgin Orbit’s ability to continue operating, and could result in significant job losses within the company. Although some employees may be able to find new positions elsewhere, the majority of Virgin Orbit’s workforce will likely be out of a job by the end of 2018.
The Virgin Group is a conglomerate run by billionaire Richard Branson. Recently, it invested $10.9 million in Virgin Galactic, a space travel company that has been struggling financially. This injection of money will hopefully allow the company to continue its journey into space and attract more tourists to its attractions.
Virgin Orbit seems to be in trouble, as its majority owner Branson has stopped funding it. The company has been trying to develop a new type of spacecraft that can carry satellites into orbit, but evidently this is not going well and Virgin Orbit may have to look for other sources of funding.
Virgin Orbit has faced several setbacks in recent months, most notably a failed launch from Cornwall UK which caused them to delay their 2017 launches by several months. Despite these set backs, Virgin Orbit has made some significant progress with their unique system; utilizing a modified Boeing 747 to release their rocket mid-flight. This system is still in the developmental stages, but if successful could provide a new and more affordable way to launch payloads into space.
Virgin Orbit’s stock price has tanked after disappointing third-quarter financial results were released. The company reported a net loss of $34 million, compared to a profit of $11 million in the same period last year. In addition, the company said its backlog of orders has decreased by 50% as lower demand from large airlines offsets increased demand from government and commercial entities.
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