published : 2023-11-09

Virgin Galactic Faces Job Cuts and Expense Reductions Amidst High Interest Rates

Virgin Galactic CEO cites the need to cut costs in the current high interest rate environment

A stunning aerial shot of Virgin Galactic's SpaceShipTwo Unity soaring through the sky, captured with a Nikon D850.

Virgin Galactic, the renowned aerospace company founded by billionaire Richard Branson, is embarking on a strategic realignment that includes slashing its workforce and reducing expenses.

In an internal email to employees, Virgin Galactic CEO Michael Colglazier explained that the company's focus must be on scaling the production of its Delta Class spaceships to ensure profitability.

Virgin Galactic CEO Michael Colglazier addressing employees during a company meeting, taken with a Canon EOS R5.

Colglazier acknowledged the challenge of investing for future profits in a capital market marked by uncertainty and high interest rates. He emphasized the need to reduce reliance on unpredictable capital markets and redirect resources towards the Delta program.

While the exact number or percentage of job cuts was not disclosed, Colglazier conveyed his apologies to those impacted by the changes.

An image showcasing the precision engineering behind Virgin Galactic's Delta Class spaceships, photographed with a Sony A7R IV.

Virgin Galactic will release further details regarding the job cuts and its third-quarter earnings during an upcoming earnings call.