CEO Dan Hart told employees during an all-hands meeting on Thursday afternoon that Virgin Orbit will lay off nearly all of its workforce and cease operations “for the foreseeable future” due to a failure to secure a funding lifeline.
Hart stated that the company will retain only 100 positions, resulting in a reduction of about 90% of the workforce, affecting all teams and departments. According to a securities filing, the layoffs will impact approximately 85% of the workforce, which amounts to 675 positions.
According to audio obtained by CNBC from the 5 p.m. ET meeting, Hart stated, “Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company.”
Hart audibly choked up during the call as he stated, “We have no choice but to implement immediate, dramatic and extremely painful changes. Probably the hardest all-hands that we’ve ever done in my life.”
Hart expressed his support for the company and its employees, stating, “This company, this team all of you mean a hell of a lot to me. And I have not, and will not, stop supporting you, whether you’re here on the journey or if you’re elsewhere.”