Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
As of the end of Q3, Virgin Orbit has $71.2 million in cash and $30.9 million in revenue.
Shares of aircraft engineering company Virgin Orbit Holdings Inc (NASDAQ: VORB) dropped by 33% in extended trading as the company is discharging nearly all its workers. According to people familiar with the matter that spoke to CNBC, the company is additionally suspending operations for a week as it seeks a funding lifeline. Currently, at premarket trading, Virgin Orbit has declined further, with its shares currently down 43.86% in the premarket trading session.
Virgin Orbit is Furloughing Staff
Virgin Orbit executives announced the furlough to employees in a company-wide meeting on Wednesday. People present at the gathering gave the details of the gathering, noting that the involuntary leave is unpaid. While just a few of the staff will continue to work for the engineering company, the others will be able to cash in paid time off (PTO). In addition, top players in the company explained that there would hopefully be an update on the furlough and funding matter in the coming week.
A company spokesperson’s comment echoes the fact that Virgin Orbit is going through some tough times. The representative revealed that the aircraft engineering company is starting an “operational pause.” The person said Virgin Orbit plans to provide updates on “go-forward operations in the coming weeks.”
In addition, the spokesperson talked about the rocket-building business, hinting at an ongoing investigation on the last mission that failed. Virgin Orbit developed a system that utilized a modified 747 jet to transport satellites into space. This is achieved by releasing a rocker from a wing of the aircraft while in the air. The last mission failed as the rocket was about to reach orbit and eventually crashed into the ocean. News of the mission’s failure did not settle well with investors, resulting in a share loss of $8.53%. The LauncherOne rocket indeed was released after and was to deliver nine satellites to earth’s orbit.
Virgin Orbit’s representative recently stated:
“Our investigation is nearly complete and our next production rocker with the needed modification incorporated is in final stages of integration and test.”
Shares of Virgin Orbit have steadily declined from its debut of almost $10 per share in December 2021. The company has lost more than 85% since the past year, falling further by 45/51% since the year began. Virgin Orbit also has a 46.84% decline from its shares in the last three months and plunged nearly 36% over the past month.
As of the end of Q3, Virgin Orbit has $71.2 million in cash and $30.9 million in revenue. Fingers are crossed on the Q2 2022 results, which are yet to be announced.