The company also sold a $10.9 million convertible note - a type of short-term debt - to Virgin Orbit Holdings, Inc., which is wholly owned by Branson’s The Virgin Group.
The WARN Act is a US law that requires corporations to provide employees with advance notice 60 day prior to layoffs. The public document filed Thursday stated that the company will incur about $15 million in charges related to the decision to cease operations, including “$8.8 million in severance payments and employee benefits costs, and $ 6.5 million in other costs primarily related to outplacement services and WARN Act exposure.” On March 15, Virgin Orbit CEO Dan Hart had told nearly all of the company’s staff to cease operations, placing them on a week-long furlough as the rocket company worked to secure additional funding. Virgin Orbit spokespeople declined to comment beyond the filing. The move was made to “reduce expenses in light of the Company’s inability to secure meaningful funding.” Virgin Orbit - the rocket company founded by British billionaire Richard Branson - is laying off the vast majority of its workforce as company leadership struggles to secure additional funding.Ībout 675 employees will be terminated by April 3, according to a public document filed Thursday, amounting to around 85% of Virgin Orbit’s workforce.
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