Virgin Orbit Bankrupt and Shutting Down U.S. Operations After Failure to Find Funding

Virgin Orbit halted operations in recent days and has begun the process of laying off most of its employees, bringing the end to a once-promising space venture that failed to gain commercial traction. The company will shut down its U.S. operations, with UK operations continuing for launch customers.<br><br>Virgin Orbit CEO Dan Hart said that the California-based company was forced to suspend operations as it hasn’t secured the necessary funding to continue operations. The company has failed to reach a deal with potential investors and funding partners, despite having been in talks for several months.<br><br>The CEO reportedly told employees that the company will be furloughing nearly everyone without pay and will retain a smaller group of employees to oversee its assets and wind down operations. Staff were told that employees who are retained to help wind down the company will be paid, but those who are being let go are unlikely to receive any outstanding pay. Employees were also told that they had no choice but to immediately return company property such as laptops, that they cannot work on side business ventures using the company’s premises and they must delete all confidential information.<br><br>The closure of Virgin Orbit is a significant blow to the space industry, with nearly 700 jobs at risk. Virgin Orbit employs over 680 people, with employees based in California, Texas, Georgia, Washington D.C. and Washington state. The company was working on a contract with the U.S. Space Force, as well as launching satellites for other private and public companies.<br><br>Virgin Orbit was founded in 2017 by Sir Richard Branson and has since raised over $1 billion from investors. The company was spun out of Virgin Galactic, a commercial spaceflight company also owned by Sir Richard Branson. In 2021, Virgin Orbit went public through a $3.7 billion special purpose acquisition vehicle (SPAC) deal. The company’s board has been working with investment bankers to find additional funding or investors, but has been unsuccessful.<br><br>Virgin Orbit launched its first rocket, LauncherOne, in 2020, which failed to reach orbit due to a rocket engine computer failure. The company’s second launch attempt was successful, reaching orbit in January 2021. Virgin Orbit has gone on to complete several successful launches and was working on a contract with the U.S. Space Force. However, the company has faced several setbacks, including a rocket failure last year and difficulties in reaching orbit with its rockets.