Virgin Orbit suspends operations, furloughs staff as it seeks funding

Richard Branson’s Virgin Orbit rocket launches a rocket under the wing of a modified Boeing 747 jetliner on July 10, 2019, in a critical drop test of its satellite high-altitude launch system.

Mike Black | Reuters

virgin track The company is furloughing nearly all its employees and suspending operations for a week to find a financial lifeline, people familiar with the matter told CNBC.

Company executives briefed employees during an all-hands meeting at 5 p.m. ET on Wednesday, according to people who attended the meeting. Time off is unpaid, but employees can cash it in with PTO, and only a small percentage continue to work. Virgin Orbit is also increasing pay for the week through Friday.

Company leaders told staff throughout the company they aimed to provide an update on furloughs and funding by next Wednesday or Thursday, according to the people, who requested anonymity to discuss internal matters.

Virgin Orbit did not immediately respond to CNBC’s request for comment.

Sign up here to receive the weekly CNBC Investing in Space newsletter.

The story is developing. Please check for updates.

Source link

Leave a Comment