Virgin Galactic (SPCE) stock skyrocketed 27% on Thursday after the commercial space travel company announced it would cut 18% of its workforce and shift to a new spacecraft expected to be more profitable.
Virgin Galactic completed six spaceflights in under half a year with its initial Unity spaceship but expects to pause those flights in mid-2024 as it shifts to its new Delta vehicle. Virgin Galactic also said it will lay off about 185 workers.
“The big move we're making here is pivoting the resources that have been being put into the Unity flights and redirecting them over to get the Delta Ships done with the cash we have on hand,” Michael Colglazier, CEO of Virgin Galactic, told analysts during the company's third quarter earnings call.
Delta will be able to transport 50% more passengers than Unity, twice a week. The spacecraft is expected to allow the company to achieve positive cash flow by 2026.
The company also said it now anticipates revenue of $3 million for the fourth quarter versus analyst estimates for $1.58 million.