Virgin Hyperloop lays off half of its employees as it pivots away from passenger travel

Almost half of Virgin Hyperloop's employees were fired on Friday as the company pivoted away from passenger travel to freight.

The company confirmed to the Financial Times that they laid off over 100 people. The layoffs will help the company focus on delivering cargo through its hyperlooppods, which are jetted through vacuum tubes at more than 600 mph.

Two people who lost their jobs said the scale of the cuts was not expected.

Virgin Hyperloop Technologies was founded in response to the idea of a high-speed passenger transport. The board of directors changed its name when Richard Branson joined.

Virgin Hyperloop is the only company of its kind to have completed a successful passenger ride using the technology.

The company is changing direction due to global supply chain issues and all the changes due to Covid, according to the Financial Times.

The majority stakeholder in Virgin Hyperloop, the DP World, began working on a cargo system using the company's hyperloop technologies in 2020.

There was doubt and internal turmoil at the company after the pivot from passenger transport to freight. Josh Giegel left the company last year. Many executives quit the company after Giegel left.

Two people with knowledge of the company's strategy told the FT that Virgin Hyperloop is considering a merger at a time when it is laying off workers. Insider did not get a response from Virgin Hyperloop, Virgin Group, or DP World.