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Virgin Orbit (NASDAQ:VORB) plummeted 32% on a report that its furloughing almost all of its employees and pausing work for a week as it seeks funding to stay afloat.
Workers will get an unpaid furlough, according to media reports, which cited people familiar. Company executives told staff about the situation at all-hands meeting on Wednesday, according to CNBC.
Virgin Orbit told Reuters that the company is starting an “operational pause” and will give an “an update on go-forward operations in the coming weeks.”
The latest news comes after a a Virgin Orbit (VORB) launch failure in January from the U.K. when a rocket suffered an anomaly that prevented the mission from reaching orbit.
Virgin Orbit CEO Dan Hart canceled at the last minute a scheduled appearance at a space industry conference in Washington D.C. set for Tuesday, CNBC said.
Virgin Orbit (VORB) said in a 10-Q filing in early November that “our losses from operations and liquidity conditions raise substantial doubt regarding our ability to continue as a going concern.”