London, Mar. 31, (PA Media/dpa/GNA) - In Britain, Sir Richard Branson’s satellite launch firm Virgin Orbit is to cut 675 jobs – about 85% of its workforce – after failing to secure new funding.
The entrepreneur has said he will inject almost £9 million ($11.1 million) to go towards severance costs.
It comes amid reports from the Financial Times that Virgin Orbit’s chief executive Dan Hart is racing to seal last-minute investment to stop the firm from collapsing.
Shares in the business plunged by as much as 40% in after-hours trading in New York after the layoffs were confirmed.
Earlier this year, a Virgin Orbit rocket failed to complete the first satellite launch from UK soil.
The business, which is headquartered in California, also paused all operations earlier this month as it sought extra funding.
In US regulatory filings, the firm confirmed the job cuts “in order to reduce expenses in light of the company’s inability to secure meaningful funding”.
It added that the layoffs, which are due to be completed by Monday April 3, will affect workers in the “all areas” of the company.
Virgin Orbit said it expects severance payments to staff and other costs related to the cuts to cost it around $15 million.
GNA