Virgin Galactic Preps for Its Next Tourist Spaceplane…by Laying Off Staff

In an effort to cut cost for the sake of the development of its next generation spaceplane, Virgin Galactic will lay off a number of its employees and save on expenses in hopes of bringing in future profits from its commercial flights.

WatchThe New M3-Powered iMacs Are Triggering Serious Deja Vu CCShare SubtitlesOffEnglish“Uncertainty has grown in the capital markets,” Michael Colglazier, Virgin’s chief executive officer, wrote in a memo to employees, citing interest rates and geopolitical unrest as factors that stood in the way of financing, according to BNN Bloomberg. AdvertisementVirgin Galactic launched its space tourism services this past summer, with the Related article: Despite the frequent launches, Virgin Galactic admitted that AdvertisementThe reason for the low revenues is partly due to the company selling about three-fourths of the first 800 tickets at a price tag of between $200,000 and $250,000. Virgin Galactic later raised its ticket prices to $450,000 each. The company also anticipates that its next generation spaceplane will bring in more revenue. The Delta vehicles are designed to fly more frequently and at a lower cost than its predecessor, Unity. Advertisement“The Delta ships are powerful economic engines,” Colglazier wrote in the memo, according to SpaceNews. “To bring them into service, we need to extend our strong financial position and reduce our reliance on unpredictable capital markets. We will accomplish this, but it requires us to redirect our resources toward the Delta ships while streamlining and reducing our work outside of the Delta program.”Virgin Galactic is trimming its team to keep its spaceship dreams afloat. It’s a tough call, but then again, space is hard—even if it is the edge of space. AdvertisementFor more spaceflight in your life, follow us on X and bookmark Gizmodo’s dedicated

Based on reporting by gizmodo.com.