Satellite launcher Virgin Orbit is laying off most of its workforce and shutting down operations for "the foreseeable future," reports CNBC.
After pausing operations earlier this month, the company has failed to secure a financial lifeline.
At an all-hands meeting on Thursday, Virgin Orbit CEO Dan Hart told employees that the company has no choice but to enact "immediate, dramatic, and extremely painful changes."
- Prior talks to secure a $200M lifeline from Texas-based venture capitalist Matthew Brown fell through, according to CNBC.
- As a result, Virgin will cut 675 positions, or nearly 90% of its workforce, which will affect all departments.
- The company expects to spend $8.8M on severance and employee benefits as well as $6.5M on outplacement services and more.
- Virgin Group, its umbrella company, is injecting an immediate $10.9M to cover some of the costs.
Virgin claimed four successful missions of its satellite launch system, which used a modified 747 jumbo jet to release a rocket during flight.
- On Jan. 9, its first orbital launch from the U.K. ended in failure after the system experienced "an anomaly" during the firing of the rocket’s second-stage engine.
