What we don’t know is how many employees will be affected by the Virgin Galactic layoffs. The company is still notifying its workers of the job cuts and plans to provide further details during a conference call later today.
That call will take place after markets close today. It will also go over the results of the company’s third-quarter earnings report.
What’s Behind the Virgin Galactic Layoffs?
Michael Colglazier, CEO of Virgin Galactic, said the following about the layoffs in an internal memo to employees:
“Uncertainty has grown in the capital markets. Interest rates remain high, which adds pressure to companies who are investing today for profits that will come in the future. Geopolitical unrest continues to expand, and the combination of these factors makes near-term access to capital much less favorable. We are going to succeed in this environment by focusing our full company efforts on the safe, efficient, and successful completion of our Delta program that will allow us to create positive cash flow.”
SPCE stock is down 9.5% as of Wednesday morning. That comes as some 3.2 million shares change hands. For comparison, its daily average trading volume is closer to 12.2 million shares. The stock is also down 55% year-to-date ().
Investors who want to know even more of the latest stock market stories will want to stick around!
We’re offering deep dives into the biggest stock market news for Wednesday! A few examples include why EVgo (NASDAQ:EVGO) stock is up today, a delayed Fisker (NYSE:FSR) earnings report and layoffs announced by Nextdoor (NYSE:KIND). You can catch up on all of this news at the following links!
More Stock Market News for Wednesday
- Why Is EVgo (EVGO) Stock Up 15% Today?
- FSR Stock Alert: Fisker Raises Red Flag With Delayed Earnings
- Nextdoor Layoffs 2023: What to Know About the Latest KIND Job Cuts
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.