Virgin Orbit: Sir Richard Branson’s rocket company fails to secure funding, lays off 85% of staff

According to multiple media reports, Virgin Orbit, Sir Richard Branson's rocket company, will cease operations for the foreseeable future and lay off 85% of staff, affecting approximately 675 employees. 

The company paused operations recently in an attempt to shore up its finances after failing to secure new investment. 

Virgin Orbit develops rockets to carry small satellites and is part of Sir Richard's business empire, which includes space tourism company Virgin Galactic and airline Virgin Atlantic.

Earlier this year, the company failed to complete the first-ever satellite launch from UK soil, which was considered a milestone for UK space exploration. The company blames its recent developments on its inability to secure meaningful funding. 

Virgin Investments has injected more than $10 million into the company to fund different costs related to the job cuts. The company expects the costs concerning the recent workforce reduction, including payments to the laid-off employees, to total around $15 million. 

Virgin Orbit's shares slid over 44% in the after-hours trading in New York yesterday. Chief executive Dan Hart said: "We have no choice but to implement immediate, dramatic and extremely painful changes."