Shulou(Shulou.com)11/24 Report--

CTOnews.com, March 31 / PRNewswire-FirstCall-Asianet /-- Virgin track CEO Dan Hart told employees at a staff meeting on Thursday that the company will stop operations in the "foreseeable future" and lay off about 90 percent of its staff because it failed to get the "life-saving funds" to keep the company running, according to CNBC. According to the audio of the meeting obtained by the media, Hart said: "Unfortunately, we were not able to get the money to provide a clear path for the company."

Hart said it would cut about 90 per cent of its workforce, leaving only 100 jobs, noting that the layoffs would affect every team and department. The company said in a filing with the securities regulator that the number of layoffs was 675, accounting for about 85% of the total workforce.

Laid-off employees will receive severance pay, extension of benefits and employment support, while two Virgin track executives will also receive "golden parachute" severance pay.

The company has been looking for new sources of funding, but has failed to reach an agreement with any investors and its largest shareholder, Richard Branson, is reluctant to continue to fund the company.

Virgin orbit, a small satellite launch company owned by British billionaire Richard Branson, was founded in 2017 to develop and commercialize an air launch rocket system called LauncherOne. The system could put a 500-pound small satellite into low-earth orbit, but failed in its first test in May 2020. In January 2021, the company successfully put 10 small NASA satellites into orbit and completed its first commercial launch in June. In January and July 2022, the company successfully launched a number of satellites. But in January 2023, the company made its first commercial launch in the UK, but the rocket was unable to put a payload into orbit because of a $100 fuel filter failure.

Overall, Virgin orbit made a total of six flights between 2020 and 2023, of which only four were successful. This has left the company in financial difficulties and unable to continue to operate. Branson invested 55 million dollars in the dying space company, but eventually abandoned the rescue plan.

CTOnews.com noted that the company's shares tumbled more than 40 per cent after Thursday's close and have fallen 82 per cent so far this year.

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