Virgin Galactic cuts jobs, costs on funding constraints

VIRGIN Galactic Holdings plans to reduce its workforce as part of a broader cost-cutting move to keep the development of its next-generation launch vehicle on track.

The space tourism venture, founded by billionaire Richard Branson, is eliminating an unspecified number of workers in an effort to save cash, it said on Tuesday (Nov 7).

“Uncertainty has grown in the capital markets,” Michael Colglazier, Virgin’s chief executive officer, said. He cited interest rates and “geopolitical unrest” as factors limiting access to financing.

The news comes a day before the company is expected to announce its latest quarterly earnings.

Virgin has launched a series of flights carrying researchers and tourists to the edge of space this year with its VMS Eve carrier aircraft and space plane VSS Unity.

But it has said it does not anticipate turning a profit on its flights until the debut of its larger Delta Class spaceships in 2026. BLOOMBERG