Virgin Galactic Holdings plans to reduce its workforce by 18 per cent. In the latest quarter, the commercial spaceflight operator posted $1.7 million in revenue, a notable increase from the $0.8 million reported in the same quarter last year. Despite this positive trend, the net loss for the quarter was $105 million, an improvement from the $146 million net loss recorded last year.
As per the reports provided by the firm, its Delta Class spaceships are expected to achieve positive cash flow from the service of the new spaceships in about three years.
Closing the quarter with a cash and marketable securities position of around $1.1 billion, the company saw a slight uptick from the previous quarter. It projects that this financial position will be adequate for the introduction of the Delta Class and the attainment of positive cash flow by 2026.
The company completed six successful spaceflights in less than six months, maintaining the production schedule for the Delta Class spaceships to start generating revenue in 2026.
The flight frequency of Delta Class has also increased, with the Delta ships expected to fly eight times per month, compared to the previous four times per month instead of four. This stands in contrast to Unity, which can only fly on a monthly basis.
In response to these developments, the company announced a workforce reduction affecting 185 employees. Though these job cuts will cost the firm about $5 million, they are expected to help save the company $25 million annually.