The decision was communicated to staff in a meeting on Wednesday, with leaders stating that a further update would be provided next week. The company recently experienced a major setback when an attempt to launch the first-ever satellite mission from UK soil ended in failure.
The CEO, Dan Hart, confirmed that the furlough would provide Virgin Orbit with time to develop a new investment plan. The company did not disclose how long the furlough would last, but more information is expected in the coming weeks.
Virgin Orbit’s stock price has dropped 18.8% to 82 cents (72p) since the announcement. A statement from the company confirmed an operational pause would be initiated from Thursday, but did not confirm or deny the furlough when asked by BBC News.
In the January launch, a jumbo jet operated by Virgin Orbit carried a rocket out of Newquay, Cornwall, releasing it high over the Atlantic Ocean before it quickly failed due to an anomaly in the rocket fuel filter. The company has since revealed that it is nearing the completion of its investigation into the incident and that the next production rocket with modifications to prevent such failures is almost complete.
The mission represented a significant milestone for the UK space industry, marking the birth of a new launch sector. The UK government hopes to establish the country as a key player in the global space industry and capture a substantial share of the market by developing new technologies, satellites, and rockets, as well as constructing new spaceports. Virgin Orbit’s decision to furlough workers comes at a time when the UK is ramping up its efforts to create a competitive and thriving space industry, making it all the more disappointing for UK space enthusiasts. The hope is that Virgin Orbit will recover from this setback, with the forthcoming investment plan expected to provide the company with a new lease of life.
