Virgin Orbit Fails to Secure Funding, Will Cease Operations and Lay Off Nearly Entire Workforce

According to the audio recording of a 5 p.m. ET meeting obtained by CNBC, the company plans to lay off all employees except for 100 or so. Dan Hart, the CEO of the company, told all employees in a meeting on Thursday that it would cease operations "for foreseeable future". Hart stated, as per the audio recording of the 5 pm ET meeting obtained by CNBC. Hart, who was audibly choked up during the phone call, said: "We have no other choice than to implement immediate and dramatic changes." Hart stated that the company would eliminate all positions except 100, which is about 90% of its workforce. The layoffs would affect each team and department. "This company, team - you all - are a huge part of my life. Stocks dropped by more than 40% in extended trading on Thursday after the announcement. Sir Richard Branson in front of Virgin Orbit rocket manufacturing.

Virgin Orbit has developed a system which uses a modified jet 747 to launch satellites into orbit by launching a rocket under the wing of the aircraft in mid-flight. It was one of a few U.S. rocket firms to reach orbit successfully with a privately developed launch vehicle. Virgin Orbit spun off from Branson's Virgin Galactic company in 2017, and the billionaire is its biggest shareholder, with 75%. In the event that it could not find a buyer, or investor, the company had previously engaged bankruptcy firms to create contingency plans. The day after Hart informed employees that Virgin Orbit would be pausing its operations, the board of directors of Virgin Orbit approved a golden parachute severance package for the top executives in the event that they were terminated due to a "change in control" at the company.