Virgin Orbit, the satellite launch company founded by Richard Branson, has announced that it will be reducing its workforce by 85%. The decision comes as a result of the ongoing COVID-19 pandemic, which has severely impacted the aerospace industry.
In a statement released on 6 May 2020, Branson said that the company would be “streamlining operations and resizing our workforce” in order to “weather this crisis and emerge on the other side in a strong position”. He added that the decision was “incredibly painful” but necessary in order to ensure the long-term viability of the company.
Virgin Orbit is one of several companies owned by Branson’s Virgin Group, which also includes Virgin Atlantic, Virgin Galactic, and Virgin Hotels. The company was founded in 2017 with the aim of providing affordable and flexible satellite launch services using a modified Boeing 747 aircraft called “Cosmic Girl”.
The company’s first launch attempt, which took place on 25 May 2020, was unsuccessful due to a malfunction in the rocket’s engine. However, Branson has remained optimistic about the company’s future, stating that “we will learn, adjust, and try again”.
The decision to reduce the workforce is not unique to Virgin Orbit, as many other aerospace companies have also been forced to make similar cuts in response to the pandemic. Boeing, for example, announced in April that it would be cutting 10% of its workforce, while Airbus has said that it will be reducing its workforce by 15,000 employees.
Despite the challenges facing the aerospace industry, there are still reasons for optimism. The demand for satellite launch services is expected to continue growing in the coming years, driven by increasing demand for high-speed internet access and other communication services.
In addition, there are several new players entering the market, such as SpaceX and Blue Origin, which are investing heavily in developing reusable rockets and other technologies that could significantly reduce the cost of launching satellites into orbit.
Overall, while the decision to reduce the workforce is undoubtedly a difficult one for Virgin Orbit and its employees, it is a necessary step in order to ensure the long-term viability of the company. With continued investment and innovation, there is reason to believe that the satellite launch industry will continue to grow and thrive in the years to come.
