VORB - Virgin Orbit stock set to hit record lows after failure to secure funding

2023-03-31 05:20:27 ET

Virgin Orbit ( NASDAQ: VORB ) is trading around -49% in pre-market hours on Friday, continuing the plunge from extended trading the previous day. Shares appear on track to reach record lows today.

The company will reportedly cease operations "for the foreseeable future" and has announced it would lay off around 675 employees, or 85% of its workforce.

Virgin Orbit said in a regulatory filing the layoffs will "reduce expenses in light of the company's inability to secure meaningful funding".

Meanwhile, CEO Dan Hart told employees in an all-hands meeting on Thursday that it will shut down operations after failing to get funding, according to a report by CNBC.

Shares have plunged around -39% so far this week and -81% YTD as it struggled to raise finances to stay afloat.

Earlier in the month CNBC reported Virgin Orbit ( VORB ) was furloughing almost all employees and pausing work as it sought funding to stay afloat. Virgin Orbit ( VORB ) was later reportedly nearing an agreement for $200M from venture capital investor Matthew Brown.

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