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.
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.