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Virgin Galactic trims staff and spending

Despite having completed its fifth commercial suborbital flight on November 2, 2023, Virgin Galactic announced yesterday that it is laying off staff and cutting spending.

The number of people laid off was not revealed. Supposedly the company has done this as part of its effort to develop an upgraded version of SpaceShipTwo.

The company reported having $980 million of cash and equivalents on hand at the end of the second quarter this year, when it reported a net loss of $134.4 million. The company has not disclosed its estimated costs for development of the Delta vehicles, but said it expected those vehicles to enter service in 2026. The company expects only limited revenue from VSS Unity, which is able to fly monthly carrying up to four customers at a time.

I instead suspect that demand for suborbital flights is dwindling because of the competition from orbital operations. Had this company started flying a decade ago, as promised numerous times by Richard Branson, it would have been ahead of the curve. It didn’t and thus missed the boat.

Genesis cover

On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.

 

The print edition can be purchased at Amazon. from any other book seller, or direct from my ebook publisher, ebookit. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.


The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
 

"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News

2 comments

  • Dick Eagleson

    Virgin Galactic’s problem isn’t lack of demand, it’s lack of ability to service said demand and to do so profitably. It’s current hardware is only good for 10 or 11 missions per year. With four customers per flight, it would take two decades to work off just Virgin’s current backlog of several hundred deposit-paid clients. That is untenable both temporally and financially. Virgin needs the planned Delta-class vehicles if it is to have any chance of long-term survival. The current belt-tightening is in service of stretching its cash hoard the minimum of three more years it will take to begin Delta-based service.

    Orbital space tourism is still at least two orders of magnitude more expensive than Virgin Galactic’s and Blue Origin’s amusement park rides. Both are “space tourism,” but they’re not remotely the same market.

  • GeorgeC

    Dick Eagleson: I agree, the cost of orbital delta-v on injection, and then the tricky friction on reentry is a high cost. So I always thought I would buy the sub orbital space plane ticket. But then I thought about the sub orbital Air Force contract for Starship. Anything orbital can easily be used in sub orbital mode if needed. So a dual use military/civilian , multi mode, reusable system is scary to investors in vastly more limited systems.

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