Virgin Orbit To Reduce About 85% Of Workforce

(RTTNews) - Virgin Orbit Holdings Inc. (VORB) disclosed in a regulatory filing on Thursday that it will reduce its workforce by about 675 employees, about 85% of its workforce, in order to reduce expenses in light of the company's inability to secure meaningful funding. Those impacted are located in all areas of the company.

The company estimates that it will incur aggregate charges of about $15 million, consisting primarily of $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.

The company expects to recognize the majority of the charges in the first quarter of 2023. The company expects that the reduction in force will be substantially complete by April 3, 2023.

VORB closed Thursday regular trading at $0.34 down $0.06 or 16.02%. In the after-hours trade, the stock further dropped $0.15 or 44.49%.