By KEVIN COSTELLOE
Space tourism company Virgin Galactic Holdings Inc. (NYSE: SPCE) in Tustin said it’s laying off about 185 employees, or 18% of its workforce, as the company faces pressure from high interest rates.
The shares rose 13% to $1.76 apiece for a market cap of $574 million in after-hours trading, after closing down 10%.
The space company expects to save $25 million annually following the staff reduction.
Virgin Galactic also released earnings today, with third-quarter revenue of $1.7 million easily outpacing analysts’ expectations of just under $1.1 million. Revenue for the fourth quarter of 2023 is expected to be approximately $3 million.
For further details, see the Nov. 20 print edition.
