Virgin Orbit announces an operational pause and will be discharging most employees, according to CNBC.
The company is looking for new investors to help relieve financial pressure and will create a new investment plan.
A Setback
Compared to SpaceX, Virgin Orbit carries smaller rockets to around 35,000 feet on the wing of a Boeing 747. The satellite launch company attempted to launch nine satellites into low-Earth orbit from its UK base, but the mission failed due to a dislodged filter.
The failed mission came on top of the company's existing financial problems, with significant drops in stock since it debuted in December 2021. According to Engadget, Virgin Orbit reported a loss of $49.2 million in its last fiscal quarter.
It had also been raising periodic funding from Virgin Investments Ltd. and is set to report its earnings for the fourth quarter of 2022 on March 29.
Despite this, the company seems to be making progress toward its next launch, with the investigation almost done and their next production rocket with the necessary modifications already in its final stages of test and integration.
The company was founded in 2017 as a spin-off of Virgin Galactic, which is focused on using supersonic planes to vault high-paying tourists on joy rides to the edge of space. On the other hand, Virgin Orbit is focused on developing an air-launched rocket for hauling small satellites to orbit, which is referred to as LauncherOne.
The company was one of the leaders in the industry that aimed to build lightweight rockets for launching small satellites. Its LauncherOne rocket reached orbit for the first time in January 2021 following a failed attempt and earlier than most of its competitors. The company also completed three more successful missions out of California.
According to CNN, the company's management had been pressing workers to conserve cash and cut down on purchases. Over the past few months, Virgin Orbit has been receiving additional financial backing from Richard Branson's family office, according to public filings.
Small Satellites in Orbit
Virgin Orbit is focused on launching small satellites into low Earth orbit, which can be used for a variety of applications including communications, Earth science, and surveillance. These satellites are typically much smaller and less expensive than traditional satellites, making them a much more attractive option for companies and organizations.
The company has also developed a mission control system that can be used to monitor and control the satellites while they are in orbit. This system can be used to adjust their orbits and ensure that they remain operational.
The company has successfully launched several satellites into orbit over the past few years and plans to continue to do so in the future. As the demand for small satellites continues to grow, Virgin Orbit is well-positioned to capitalize on this growing market and continue to be a leader in the small satellite launch industry.
Related article: Virgin Orbit's 'Start Me Up' Mission Fails Due to Premature Shutdown, Formal Investigation Underway
