Virgin Orbit ceases operations after failing to secure funding

Aircraft engineering company Virgin Orbit will cease operating "for the foreseeable future" after it fell short of locking in a funding lifeline.

Chief executive Dan Hart told employees on Thursday afternoon that Virgin Orbit will lay off 90% of its workforce, with just 100 staff staying on.

"Unfortunately, we've not been able to secure the funding to provide a clear path for this company," Hart said. "We have no choice but to implement immediate, dramatic, and extremely painful changes."

Layoffs will affect every team and department.

Virgin Orbit added that it will "provide a severance package for every departing" employee, with a cash payment, an extension of benefits, and support in finding a new position, as well as a "direct pipeline" for hiring already being set up with sister company Virgin Galactic.

As of 1055 BST, Virgin Orbit shares had tumbled 49.46% in pre-market trading to just $0.17 each.

Reporting by Iain Gilbert at Sharecast.com