Virgin Galactic has laid off 185 employees, representing about 18% of its workforce, as the space-tourism company shifts its focus to building new spaceships capable of carrying six passengers.
According to a report by CNBC, CEO Michael Colglazier informed employees via email that they would receive phone calls by Thursday to learn if they were being let go. Colglazier emphasized the importance of personal discussions and working from home since on-site work locations would be unavailable through the end of the week.
During an earnings call, Virgin Galactic stated that it would begin 2024 with approximately 840 full-time employees, targeting a cost savings of around $25 million through the reduction in headcount.
Colglazier reiterated the company’s commitment to the profitability and growth driven by its Delta Class spaceships, which are expected to be the company’s primary focus going forward. The plan includes the opening of a factory in Phoenix next year to produce six spaceships annually, with a pause in spaceflight operations in 2024 to concentrate on the production of its Delta Class spaceships.
Virgin Galactic aims to conduct 400 flights annually from New Mexico’s Spaceport America, with plans to operate flights with its new spaceships starting in 2026 after testing in 2025. The company recently completed its first commercial space flight and intends to continue expanding its operations.
However, the company did not respond to requests for comment that were made outside of normal working hours.
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