Virgin Orbit (VORB), a company that specialized in sending satellites into space, said it is ceasing operations after failing to secure funding.
The company, which was part of British entrepreneur Richard Branson’s Virgin group of companies, said it will layoff all but 100 employees, amounting to 90% of its workforce.
Virgin Orbit executives said that the company is forced to cease operations after late-stage talks to secure funding fell through.
The company had previously furloughed hundreds of staff on March 15 as it sought more money.
Virgin Orbit developed a system that sent satellites into space using a modified 747 aircraft. However, the company’s last mission suffered a mid-flight failure that caused its rocket and satellite to crash into the ocean.
Virgin Orbit had launched six missions since 2020, with four successes and two failures.
Majority owner Richard Branson has been unwilling to fund the company further following the last launch failure.
Virgin Orbit was spun out of Branson’s Virgin Galactic in 2017 and counts the billionaire as its largest stakeholder with a 75% ownership stake.
The company said that it already hired bankruptcy lawyers to draw up plans in the event it was unable to find an investor and was forced to wind-up operations.
Virgin Orbit’s stock closed yesterday at $0.34 U.S. per share. The share price is down 45% in premarket trading following news that the company is ceasing operations.