Virgin Galactic to cut staff to focus on lower-cost Delta ships

Commercial space-flight operator Virgin Galactic Holdings Inc.
SPCE,
+2.96%
on Tuesday said it would be cutting staff and costs outside of its Delta spacecraft program, which it expects to bring lower costs and more profit. Management, in an email to employees, did not offer specific figures, but said it would offer more detail during its third-quarter earnings call on Wednesday. The company did not immediately respond to a request for more information about the cuts, which follow a handful of space flights this year. “To profitably scale our business, we must first invest upfront capital to create a fleet of ships based on a standardized production model — the Delta Class ships,” Chief Executive Michael Colglazier said in the email. He added that “uncertainty has grown in the capital markets,” with higher interest rates pressuring borrowing and “geopolitical unrest” making for a more cautious environment. Shares were largely unchanged after hours.