Virgin Galactic, the leader in suborbital space travel, is making significant changes in order to focus on the development of its next generation of spaceplanes. This strategic realignment includes staff layoffs and expense reductions to ensure the company’s long-term success.
While specific details regarding the number of layoffs and facility closures were not provided, the company’s CEO, Michael Colglazier, emphasized the need to conserve funding to prioritize the development of the Delta class of vehicles. This next generation spacecraft aims to offer more frequent and cost-effective flights than its predecessor, VSS Unity.
In a memo to employees, Colglazier cited market uncertainty due to high interest rates and geopolitical events as reasons for the shift in focus. He stressed the importance of redirecting resources towards the Delta ships while streamlining and reducing work outside of the Delta program.
Virgin Galactic reported having $980 million in cash and equivalents at the end of the second quarter of this year, with an anticipated in-service date for the Delta vehicles in 2026. The company had also previously deferred work on a new line of mothership aircraft to carry the Delta-class spaceplanes.
Despite these changes, Virgin Galactic remains committed to its mission of making space travel accessible. The company completed its fifth commercial flight of VSS Unity in November and plans to resume flights in January after the annual maintenance period.
