Branson's Virgin Orbit to pause operations, shares tumble

(Reuters) - Richard Branson's Virgin Orbit said it will pause all operations from Thursday, and was conducting discussions with potential funding sources and exploring strategic opportunities, sending its shares down nearly 45% in premarket trading.

The satellite launch company was also furloughing nearly all of its employees, a source familiar with the matter told Reuters on Wednesday.

Chief Executive Dan Hart told staff in a meeting that the furlough was intended to buy Virgin Orbit time to finalize a new investment plan to help pull the company out of its financial woes, according to the source, who attended the meeting.

The company reported cash and cash equivalents of $71.2 million as of Sept. 30, 2022.

(Reporting by Chavi Mehta in Bengaluru; Editing by Saumyadeb Chakrabarty)