Virgin Galactic Holdings intends to cut 18% of its workforce. The commercial spaceflight operator reported $1.7 million in revenue in the most recent quarter, a significant increase from the $0.8 million reported in the same quarter last year. Despite this encouraging trend, the net loss for the quarter was $105 million, down from $146 million the previous year.
According to the firm’s reports, its Delta Class spaceships are expected to generate positive cash flow from the service of the new spaceships in about three years.
The company ended the quarter with a cash and marketable securities position of around $1.1 billion, a slight increase from the previous quarter. It anticipates that this financial position will be sufficient for the launch of the Delta Class and the achievement of positive cash flow by 2026.
The company completed six successful spaceflights in less than six months, keeping the Delta Class spaceships on track to begin generating revenue in 2026.
Delta Class flight frequency has also increased, with Delta ships expected to fly eight times per month, up from four times per month previously. This is in contrast to Unity, which can only fly once a month.
In response to these developments, the company announced a 185-person workforce reduction. Although the job cuts will cost the company $5 million, they are expected to save the company $25 million per year.