Virgin Orbit, a rocket company owned by British billionaire Sir Richard Branson, will lay off 85% of its staff - equivalent to 675 employees - after failing to secure new investment.
The company will also cease operations for the foreseeable, according to reports by CNBC News.
It comes weeks after the rocket company suspended its operations in an effort to stabilise its finances.
Reports say that the CEO of Virgin Orbit, Dan Hart told employees during a meeting on Thursday afternoon this week.
According to audio of the meeting obtained by CNBC, Dan Hart said: "“Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company,”
“We have no choice but to implement immediate, dramatic and extremely painful changes."
He added this would be “probably the hardest all-hands that we’ve ever done in my life.”
In a US regulatory filing issued on March 30, Virgin Orbit said it made the decision "in order to reduce expenses in light of the company’s inability to secure meaningful funding."
In the filing, Virgin Orbit said that the layoffs will impact around 675 employees across all areas of the company with equates to around 85%.
Virgin Orbit says the job cuts will cost it $15million (£8million).
It also reported that Sir Richar Branson's company Virgin Investments has put forward £10.9million (£88million) to "fund severance and other costs related to the workforce reduction".
The reason for the layoffs is reportedly due to "late stage deal talks" having fallen through over the last week.
Earlier this month the satellite launching company announced that it was "pausing" operations as it seeked new funding.
At the time, almost all employees at Virgin Orbit were reportedly put on furlough.
In a statement shared with Mirror Money, Virgin Orbit said: "“Virgin Orbit is initiating a company-wide operational pause, effective March 16, 2023, and anticipates providing an update on go-forward operations in the coming weeks."
It did not comment on the reported furlough.
Launched in 2017, Virgin Orbit is a company within the Virgin Group, owned by Sir Richard Branson, which provides launch services for small satellites.
Virgin Orbit told Mirror Money that today's decision was not taken lightly and it was a "necessary" action "in light of the Company’s weakened liquidity position".
The company is working with the Virgin Group to give the affected employees the "best outcome" with those leaving the business receiving a severance package of a cash payment, an extension of benefits, and support in finding a new position.
