New York March 31 2023: Rocket maker Virgin Orbit Holdings(VORB.O) on Thursday said it was laying off about 85% of staff because it had not been able to raise new investment.
Richard Branson's Virgin Group has a controlling interest in Virgin Orbit.
Shares of the company fell 38% in after hours trade.
About 675 employees will lose their jobs, and the company expects to take related charges of about $15 million, Virgin Orbit said in a regulatory filing.
The move was the result of "the company's inability to secure meaningful funding," the filing said.
Virgin Orbit went public in 2021 through a blank-check deal, where it raised $255 million less than expected. In addition to the recent failure to raise funds, the January failure of a rocket launch increased pressure on the company.