Virgin Orbit suspends work and sends employees on unpaid leave
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British billionaire Richard Branson’s space company Virgin Orbit on Wednesday, March 15, informed employees that the company would be suspended for a week starting Thursday. This is reported CNBC with reference to sources. Almost all Virgin Orbit employees were sent on unpaid leave. The company explained this by the need to find funds to continue its work. The press service of Virgin Orbit confirmed the suspension of work, but did not provide details.
After the information became public, shares of Virgin Orbit fell by 33%. Since the listing of its shares on the stock exchange in December 2021, their price has fallen tenfold. At the end of the third quarter, Virgin Orbit had $71.2 million in cash, ending the quarter with a loss before taxes, interest, depreciation and amortization (EBITDA) of $42.9 million. The company then received a $55 million loan through Virgin Group’s investment arm. Mr Branson.
In January Virgin Orbit failed to complete the first-ever launch of space satellites from the UK – the company reported the occurrence of an “anomaly” during the launch of the LauncherOne launch vehicle, which was supposed to put nine satellites into orbit. After that, shares of Virgin Orbit fell by a third.
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