Shares of Virgin Orbit Holdings (NASDAQ: VORB) tanked by more than 40% in pre-market trading on Thursday after a CNBC report that the space flight and services company was furloughing almost all of its employees and was pausing operations for a week. The company was searching for a funding lifeline while it put on hold its operations.
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The company briefed all of its employees on the current situation in an all-hands meeting on Wednesday. The furlough is currently unpaid though employees can cash in on their paid time off (PTO). Virgin Orbit also moved up the payroll by a week to Friday.
Virgin Orbit’s spokesperson while confirming the news, told CNBC, that the company will provide “an update on go-forward operations in the coming weeks.”
VORB stock has tanked by more than 80% in the past year.