Virgin Orbit pauses operations for a week, furloughs nearly entire staff as it seeks funding
Last edited Wed Mar 15, 2023, 08:15 PM - Edit history (2)
Source: CNBC
Virgin Orbit is furloughing nearly all its employees and pausing operations for a week as it looks for a funding lifeline, people familiar with the matter told CNBC.
Shares of Virgin Orbit fell roughly 31% in after-hours trading from its Wednesday close of $1.01 a share. The stock has slid steadily from its debut of near $10 a share in December 2021.
Company executives briefed staff on the situation in an all-hands meeting at 5 p.m. ET on Wednesday, according to people who were in the meeting. The furlough is unpaid, though employees can cash in PTO, with only a small team continuing to work. Virgin Orbit is also moving up payroll by a week to Friday.
In the all-hands, company leaders told employees that they aimed to provide an update on the furlough and funding situation by next Wednesday or Thursday, according to the people, who asked to remain anonymous to discuss internal matters. Virgin Orbit did not respond to CNBC’s requests for comment, but told Reuters that the company is starting an “operational pause,” and expects to give “an update on go-forward operations in the coming weeks.”
Read more: https://www.cnbc.com/2023/03/15/virgin-orbit-pauses-operations-furloughs-staff.html
Article updated.
Previous article -
Company executives briefed staff on the situation in an all-hands meeting at 5 p.m. ET on Wednesday, according to people who were in the meeting. The furlough is unpaid, though employees can cash in PTO, with only a small team continuing to work. Virgin Orbit is also moving up payroll by a week to Friday.
In the all-hands, company leaders told employees that they aimed to provide an update on the furlough and funding situation by next Wednesday or Thursday, according to the people, who asked to remain anonymous to discuss internal matters.
Virgin Orbit did not immediately respond to CNBC's requests for comment. Shares of Virgin Orbit fell roughly 10% in after-hours trading from its Wednesday close of $1.01 a share. The stock has slid steadily from its debut of near $10 a share in December 2021.
Original article -
Company executives briefed staff on the situation in an all-hands meeting at 5 p.m. ET on Wednesday, according to people who were in the meeting. The furlough is unpaid, though employees can cash in PTO, with only a small team continuing to work. Virgin Orbit is also moving up payroll by a week to Friday.
In the all-hands, company leaders told employees that they aimed to provide an update on the furlough and funding situation by next Wednesday or Thursday, according to the people, who requested to remain anonymous to discuss internal matters.
Virgin Orbit did not immediately respond to CNBC's request for comment.
This story is developing. Please check back for updates.
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