NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Mukesh Ambani
    WhatsApp
    Reliance Jio
    OPPO
    Vivo
    Sensex
    Bitcoin
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Virgin Orbit's turbulent times: What led to the shutdown 
    Business

    Virgin Orbit's turbulent times: What led to the shutdown 

    Virgin Orbit's turbulent times: What led to the shutdown 
    Written by Athik Saleh
    Mar 31, 2023, 02:21 pm 2 min read
    Virgin Orbit's turbulent times: What led to the shutdown 
    Virgin Orbit has been burning cash for a while

    Virgin Orbit, the Richard Branson-owned satellite company that almost launched Western Europe's first orbital satellite, is shutting down operations "for the foreseeable future." The embattled company has been struggling to secure additional funding and, as a result, announced an operational pause earlier this month. The company is also laying off nearly all of its workforce.

    Why does this story matter?

    • Virgin Orbit rose to fame due to its peculiar way of launching satellites. Instead of launching vertically from the ground, the company uses a modified Boeing 747 to air-launch rockets.
    • The company was initially ahead of its competitors with four successful missions under its belt. However, its failure to launch a mission from the UK affected the company's credibility.

    The company will axe 675 employees

    Virgin Orbit will fire around 90% of its workforce. All but 100 positions will be eliminated. Per a Securities and Exchange Commission (SEC) filing, the company is axing 675 employees. Every departing employee will get a severance package with cash payment, an extension of benefits, and support in finding a new job. The company offered a "direct pipeline" with sister company Virgin Galactica.

    Virgin Orbit has been burning cash for a while

    Much before it failed to launch a satellite from the UK, Virgin Orbit was burning cash. In the three months that ended in September 2022, the company had a net negative cash flow. The company had $71.2 million in cash at the end of the quarter compared to $1.194 billion year-over-year. Till September 2022, its net losses were $139.5 million.

    The company couldn't raise any funds

    The company has been trying to raise funds to fight off bankruptcy for a while. It even hired bankruptcy firms to draw up contingency plans. Virgin Orbits raised $60 million from Branson's Virgin Group, but even he seems done funding the company. The firm was in talks with Mathew Brown Companies to raise $200 million, but that did not work out as well.

    Company has no choice but to implement painful changes: CEO

    "Unfortunately, we've not been able to secure the funding to provide a clear path for this company," said CEO Dan Hart. "We have no choice but to implement immediate, dramatic, and extremely painful changes," Hart said, audibly choking in an audio obtained by CNBC. "This company, this team — all of you — means a hell of a lot to me," he added.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Latest
    Richard Branson

    Latest

    IPL 2023 Eliminator: LSG, MI set to lock horns   Indian Premier League (IPL)
    WhatsApp users can now edit sent messages within 15 minutes WhatsApp
    NASA's Hubble telescope finds jellyfish galaxy 900 million light-years away NASA
    Women from Punjab being sold to locals in Muscat: Report Punjab

    Richard Branson

    Singapore executes Indian-origin man for supplying cannabis  Singapore
    UK's first satellite fails to reach orbit due to 'anomaly' United Kingdom
    Hyperloop in India, Saudi Arabia much sooner than you think Hyperloop One
    'Lot to do on Earth,' Bill Gates on space tourism Bill Gates

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023