Virgin Orbit Pauses Operations For a Week, Furloughs Nearly Entire Staff

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. From the report: 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.

The rocket-building company developed a system that uses a modified 747 jet to send satellites into space by dropping a rocket from under the aircraft's wing mid-flight. But the company's last mission suffered a mid-flight failure, with an issue during the launch causing the rocket to not reach orbit and crash into the ocean. 'Our investigation is nearly complete and our next production rocket with the needed modification incorporated is in final stages of integration and test,' Virgin Orbit's spokesperson said.

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