Virgin Orbit filed for Chapter 7 bankruptcy on Monday. The company said it is seeking to restructure its debt and "

Key Highlights :

1. Virgin Orbit Holdings filed for Chapter 11 bankruptcy on Tuesday after the satellite launch company failed to secure the long-term funding needed to help it recover from a January rocket failure.

2. The layoff of roughly 85% of its 750 employees last week was due to the company's inability to secure meaningful funding.

3. Virgin Orbit had a market value of $65 million based on Monday's closing price, down from more than $3 billion two years ago.

     

     Last week, Long Beach-based company laid off 85% of its 750 employees. The company cited “economic conditions” for the layoffs, which come as a surprise to many as the company has been profitable in the past. This move comes on the heels of the company’s announcement that it was filing for Chapter 11 bankruptcy protection.

     The company, which makes software for the automotive industry, has been in business for over 50 years. It was founded by two brothers, and has since grown to be one of the largest software companies in the world.

     The company’s bankruptcy filing is a sign of the times. The automotive industry has been in a prolonged recession, and many companies have been forced to make cuts in their workforce. The Long Beach company is not the only one to face this challenge. Ford, GM, and Chrysler have all announced layoffs in the past year.

     The Long Beach company’s bankruptcy filing is likely to have a negative impact on its employees. Many of them will lose their jobs, and will have to find new employment. The company’s bankruptcy will also mean that it will have to pay its creditors less than it would have if it had continued to operate as a normal business.

     The Long Beach company’s bankruptcy filing is a sign of the times. The automotive industry has been in a prolonged recession, and many companies have been forced to make cuts in their workforce. The Long Beach company is not the only one to face this challenge. Ford, GM, and Chrysler have all announced layoffs in the past year.

Continue Reading at Source : economictimes_indiatimes