Richard Branson's Virgin Galactic Trims 18% Workforce To Concentrate On New Spaceships
Space tourism company, Virgin Galactic, has laid off 185 employees, approximately 18% of its workforce, to focus on building new spaceships.
According to a report by Business Insider, the decision was communicated to the employees via email on Tuesday by CEO Michael Colglazier, who stated that affected employees would be informed by Thursday.
The company, co-founded by Richard Branson in 2004, expects to start in 2024 with approximately 840 full-time employees. The reduction in workforce is anticipated to generate around $25 million in cost savings.
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During an earnings call on Wednesday, Colglazier expressed that the company’s Delta Class spaceships would be key to its profitability and growth. He emphasized that Virgin Galactic “must focus our efforts on bringing these ships into service”.
The company is set to open a factory in Phoenix next year to produce six spaceships a year. It also plans to pause spaceflight operations in 2024 to focus on producing its Delta Class spaceships.
The new spaceships which are designed to carry six passengers on weekly spaceflights, are expected to start operating flights in 2026 after testing them in 2025. Virgin Galactic is aiming for 400 flights a year from New Mexico’s Spaceport America.
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