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