Branson’s Virgin Hyperloop layoffs, shifting to cargo-only transport  

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This week Virgin Hyperloop confirmed it has laid off half its employees and is abandoning development plans for a passenger transit system

Staff was cut via a video conference. And according to insiders 111 people were laid off. And the number of job cuts was “definitely not expected.” 

The company confirmed the change in its business model. And said that the shift was due to weaknesses in the global supply chain exposed during the pandemic.

 The technology is needed to create a more robust transportation system for moving freight, not people. And the company also cites lower regulatory issues for transporting cargo as justification for the change in the business model.

In November 2020, the company had the first test of a successful passenger journey.  The company vision is of a high-speed “vacuum tube” passenger transportation system with pods moving over 650 miles per hour. That plan is now on hold. And the focus will shift to cargo-only shipments.

The firm was formerly known as Hyperloop One until Richard Branson’s Virgin Group got an ownership interest in the company and Branson joined the Board of Directors. DP World, the Dubai-based remains the majority owner of Virgin Hyperloop. To date, the company has raised over $400 million from investors.