Virgin Orbit to fire about 85% of employees

Rocket maker Virgin Orbit Holdings announced its decision to lay off about 85 per cent or  6AC75 employees citing the inability to attract funds.

The company expects to take related charges of about US$15 million, Virgin Orbit said in a regulatory filing that said the move was the result of “the company’s inability to secure meaningful funding”, the filing said.

According to Reuter's report, shares of the company, which is controlled by Richard Branson’s Virgin Group, fell 38 per cent in after-hours trade.

In 20121, Virgin Orbit went public through a blank-check deal, where it raised US$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.

The firm suffered a setback after its talks of US$200 million investment with Texas-based Matthew Brown collapsed.