Virgin Orbit will pause all operations – with nearly all workers on the satellite tv for pc launch firm anticipated to be furloughed.
The firm made the announcement after the first satellite tv for pc mission from UK soil failed to achieve orbit earlier this yr.
Chief govt Dan Hart advised workers in a gathering on Wednesday that the furlough was supposed to purchase Virgin Orbit time to finalise a brand new funding plan, in response to a supply current.
The size of the furlough interval is at present unclear. However, Mr Hart mentioned he would replace workers by the center of subsequent week.
Virgin Orbit’s shares plunged nearly 19% to 82 cents (72p) in prolonged buying and selling after the announcement.
The firm had been valued at $3.2bn in a “blank cheque deal” to take the satellite tv for pc launch firm public on the US inventory market in 2021.
But the launch failure on 9 January represented a serious blow to the enterprise.
Mr Hart mentioned the corporate would “proceed cautiously towards the launch” of its subsequent rocket after the primary mission failed resulting from a rocket gas error.
An investigation was launched into the mission failure from the Spaceport Cornwall website at Newquay Airport.
Richard Branson’s firm mentioned in an announcement: “On the ops side, our investigation is nearly complete and our next production rocket with the needed modification incorporated is in final stages of integration and test.”
What was a highly-anticipated launch led to disappointment after the rocket didn’t deploy its payload of 9 satellites.
The opening a part of the mission went in response to plan, with a transformed Boeing 747 named Cosmic Girl flying 35,000ft over the Atlantic Ocean off Ireland’s southern coast.
From there, it deployed the 21-metre rocket, named LauncherOne, containing the small satellites – which might have been the primary launched into orbit from western Europe.
But organisers recognized an “anomaly” resulting in a “premature shutdown”.
Party ambiance turned silent after launch failure
The craft “successfully executed pre-flight preparations, carrier aircraft take-off, captive carry flight and rocket release” – all “first-of-a-kind achievements” for an orbital launch try from western Europe.
However, the rocket failed within the latter phases and fell again to Earth, touchdown in an “approved safety corridor” within the Atlantic Ocean.
Mr Hart described the mission failure as “painful for all involved”.
Sky News has contacted Virgin Orbit for additional remark.