After the satellite launch failed in January, it was difficult to secure funding, so all work was suspended.
Approximately KRW 20 billion in expenses related to job reduction, including KRW 11.5 billion in severance pay and welfare expenses and KRW 8.5 billion in other expenses
[로스앤젤레스=AP/뉴시스]A Virgin Orbit’s Boeing 747-400 aircraft, dubbed the Cosmic Girl, prepares to land at the Mojave Aerospace Port in the desert north of Los Angeles on May 25, 2020. Just three months after Richard Branson’s ‘Virgin Orbit’ failed satellite launch, the company has laid off almost all of its staff as it struggles to secure funding. 2023.03.31.
[AP/뉴시스]Reporter Yoo Se-jin = Richard Branson’s ‘Virgin Orbit’ failed to launch a satellite three months after it became difficult to secure funding, and the company has laid off almost all of its personnel.
‘Virgin Orbit’, headquartered in Long Beach, California, submitted a document to the US Securities and Exchange Commission (SWC) on the 31st that it would cut 675 people, or about 85% of its total employees.
Virgin Orbit confirmed earlier this month that all operations were temporarily suspended amid reports of possible job cuts. However, it did not say how long this work disruption would last.
The company tried to put its first satellite into orbit in Europe in January, but the mission failed when the top of the rocket closed prematurely.
Virgin Orbit said an investigation in February confirmed that the rocket’s fuel filter had come off and the engine had overheated, causing other components to malfunction over the Atlantic Ocean.
Virgin Orbit has successfully launched four satellites from California. In addition to commercial use, this includes launches for defense purposes by the US government.
According to documents filed by Virgin Orbit with the SEC on the 31st, the reductions will be made in all areas of the company. Costs related to the layoffs amounted to about $15.5 million (about 20.3 billion won), most of which included severance pay and employee welfare benefits of $8.8 million (about 11.5 billion won) and other employee-related expenses of $6.5 million (about 8.5 billion won).
Virgin Orbit said it expected the layoffs to be completed by April 3.
The company is listed on NASDAQ and was founded in 2017 by British billionaire Richard Branson to target the small satellite space launch market.
Virgin Orbit’s LauncherOne rocket is air-launched from a modified Virgin airliner, allowing it to operate more flexibly than launching from a fixed launch pad on land.
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