The head of Spaceport Cornwall has said she is “saddened” to hear that Sir Richard Branson’s satellite launch firm Virgin Orbit is to cut 675 jobs – about 85% of its workforce – after failing to secure new funding.

The news comes just over three months after the first ever space launch from UK soil, which took off successfully but sadly failed to reach orbit.

This saw a modified Boeing 747 Cosmic Girl take off from Spaceport Cornwall in Newquay, carrying with it the rocket LauncherOne and nine satellites.

The aim had been to release the rocket over the Atlantic, which would then launch the satellites into orbit, but while the rocket reached space and successfully completed the first phase burn, it was unable to reach orbit due to the second stage burn shutting down prematurely.

Virgin Orbit, which his based in California, had initially said it “anticipated” a return to Cornwall, but earlier this month announced it was pausing all activity as it sought extra funding.

In light of the latest news, entrepreneur Richard Branson said he would be putting almost £9 million to go towards severance costs.

PA News Agency has reported that shares in the business plunged by as much as 40% in after-hours trading in New York after the layoffs were confirmed.

It said that in US regulatory filings, the firm confirmed the job cuts “in order to reduce expenses in light of the company’s inability to secure meaningful funding”.

Virgin Orbit added that the layoffs, which are due to be completed by Monday (April 3) will affect workers in “all areas” of the company.

It said it expects severance payments to staff and other costs related to the cuts to cost it around 15 million US dollars (£12.1 million).

Melissa Quinn, head of Spaceport Cornwall, said: “We are saddened to hear the news from Virgin Orbit. We wish the very best for all of the team who have been affected.

“Spaceport Cornwall continues to operate with no direct impact to the team or project.

“As the UK’s only licensed Spaceport we continue to grow the space cluster in Cornwall through developing future launch operations, opening a new facility to support global space and satellite businesses and inspire local school children into STEAM through our outreach programme.”

“The Government remains committed to supporting the development of a dynamic UK spaceflight sector, and our focus is on supporting multiple projects designed to make the UK the leading provider of commercial small satellite launch in Europe by 2030, generating more jobs and growth across the country.”