Virgin Orbit ceases operations after failing to find funding

Virgin Orbit Holdings, the satellite-launch company tied to British billionaire Richard Branson, is ceasing operations indefinitely, succumbing to growing cash-crunch pressures that have paralyzed startups in many emerging technologies. The company said in a filing Thursday that it was cutting 675 jobs, or about 85% of its workforce, “in order to reduce expenses in light of the company’s inability to secure meaningful funding.” A spokesperson for Virgin Orbit said the remaining 15% of employees will work on winding down the business. The move punctuates a rapid fall after its high-profile launch failure in January and a collapse in its stock price. Virgin Orbit temporarily suspended operations earlier this month while it sought additional capital. The firm — part of Branson’s empire that includes airline Virgin Atlantic and spaceflight company Virgin Galactic Holdings Inc. — hasn’t turned a profit as a public company. Virgin Orbit shares fell 45% in extended New York trading as of 7:20 p.m., trading at just 19 cents each. The stock was worth more than $7 a year ago. Charges will amount to about $15m, consisting primarily of $8.8m in severance pay and employee benefits, and $6.5m in other costs such as outplacement services, Virgin Orbit said in the filing. Just two weeks ago, the company approved a severance plan for top executives, with CEO Daniel Hart standing to collect a payout of twice his base compensation, a cash payment equal to the pro-rated annual target bonus, as well as as much as six months of health insurance cover.<br/>