Virgin Galactic Cuts Workforce and Realigns Operations Amid Market Uncertainties

Virgin Galactic Holdings announced today a significant strategic realignment and related workforce reduction to bolster the production of its upcoming Delta Class spaceships.

The company’s senior leadership is set to discuss this major decision and provide additional details during the third-quarter earnings call scheduled for Wednesday, November 8, 2023.

A Difficult Decision Amidst Economic Pressure

In an internal memo to employees, CEO Michael Colglazier expressed the challenging nature of this decision, highlighting the impacts on the team and the company’s long-term financial health.

The internal memo by CEO Michael Colglazier outlines the need for workforce reductions due to market fluctuations and the high investment demands of spaceship production. Colglazier acknowledges the hard work and dedication of the team and extends his gratitude, juxtaposing the company’s achievements with the difficult decision of letting employees go.

The reduction, says the memo, aligns with the company’s future vision of creating a sustainable financial model to navigate the complexities of today’s economic landscape. The process will be executed with direct communication, underscoring the company’s commitment to its employees’ welfare even in trying times.»[Interest rates remain high] and geopolitical unrest continues to expand, and the combination of these factors makes near-term access to capital much less favorable» says Colglazier, adding that «The Delta ships are powerful economic engines. 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», he states.

«This is a tough moment… but these actions are being taken to remove reliance on unpredictable capital markets, and these actions protect our ability to succeed as we build and lead our industry through the long term. I ask for your understanding and continued engagement as we adjust our operating focus and move forward», Colglazier concludes.