Virgin Orbit Halts Operations and Furloughs Almost Entire Staff in Desperate Bid for Funding to Keep Space Launches Going

Photo Provided Virgin Orbit/Greg Robinson.

Virgin Orbit, the satellite-launching arm of Sir Richard Branson's Virgin Group, has announced that it will be putting operations on hold for a week and furloughing almost all of its staff. The move comes as the company seeks additional funding to sustain its operations and continue its growth trajectory.

According to a statement by the company's CEO, Dan Hart, the decision was made "with a heavy heart," but was necessary in order to ensure the long-term stability of the company. "We remain committed to our mission of providing affordable and responsive access to space for small satellites, but we must take these difficult steps to ensure that we can continue to do so," Hart said.

Virgin Orbit, which was founded in 2017, has made significant strides in the space industry over the past few years. The company has developed a unique launch system that uses a modified Boeing 747 aircraft to carry rockets to a high altitude before releasing them into orbit. This approach allows for more flexible and cost-effective launches, particularly for small satellites that don't require the massive payloads of traditional rocket launches.

Despite its innovative approach, however, Virgin Orbit has faced significant financial challenges in recent years. The COVID-19 pandemic has had a major impact on the space industry as a whole, with many companies experiencing delays and setbacks due to supply chain disruptions and travel restrictions. In addition, the high costs associated with space launches have made it difficult for Virgin Orbit to secure the funding it needs to continue its operations.

To address these challenges, the company has been seeking additional investment from both public and private sources. In January 2021, the company raised $500 million in a funding round led by its existing investors, including Virgin Group and Mubadala Investment Company. However, it appears that this funding was not sufficient to sustain the company's operations over the long term.

The decision to pause operations and furlough staff is undoubtedly a difficult one for Virgin Orbit and its employees. However, it may be a necessary step in order to secure the additional funding the company needs to continue its growth and development. With its innovative approach to satellite launches, Virgin Orbit has the potential to play a major role in the space industry in the years to come. However, it will need to navigate these financial challenges in order to achieve its goals.