85% of the workers at Sir Richard Branson’s rocket firm, Virgin Orbit, will be laid off.

Virgin Orbit, the rocket company owned by British billionaire Sir Richard Branson, has announced plans to lay off 85% of its staff after failing to secure new investment. Reports suggest that the company will also halt operations indefinitely. The move comes just weeks after the company paused its operations to shore up its finances. In addition, Virgin Orbit’s shares fell by more than 44% in after-hours trading in New York following the announcement. The layoff will affect roughly 675 employees across all areas of the company.

Virgin Investments, Sir Richard’s investment firm, has pledged $10.9m to cover severance and other costs. Virgin Orbit has not yet commented on the situation. The company, which develops rockets to carry small satellites, was founded in 2017 and is part of Sir Richard’s business empire, which includes airline Virgin Atlantic and space tourism company Virgin Galactic. In January, Virgin Orbit’s LauncherOne rocket, launched from the Boeing 747 aircraft Cosmic Girl, failed to complete the first ever satellite launch from UK soil. The company has not turned a profit as a public company.