Virgin Hyperloop lays off half of staff and focuses on freight transport

Virgin Hyperloop has laid off 111 employees and will focus on freight rather than passenger transport. Virgin Hyperloop is the only hyperloop company to have field-tested people.

According to Virgin Hyperloop, the switch to a focus on freight transport is made because of the global supply problems and all the changes caused by the corona virus. The new strategy will enable the company to “respond in a more agile and cost-efficient manner,” a spokesperson told the Financial Times.

Virgin Hyperloop confirms to the newspaper that 111 employees have been laid off. Due to the shifted focus, their positions would have become redundant. This concerns about half of all employees of the company. Two employees tell the newspaper that the layoffs were announced in a video conference.

According to the Financial Times, Virgin Hyperloop has been rumored for some time. Last year, co-founder Josh Giegel left the company and several top people and talents are said to have left as well.

Virgin Hyperloop has raised more than $400 million in investments and is 76 percent owned by DP World. That is a company of the government of the United Arab Emirates. There was a deal to build a connection in Saudi Arabia for the transport of people. According to DP World, the government of that state also sees an option for freight transport. Virgin Hyperloop is said to be in talks with 15 customers about providing a hyperloop system for transporting pallets of freight.

In 2020, Virgin Hyperloop conducted a successful test with passengers, at a relatively low speed of 173 km/h. More companies are developing hyperloop systems, but Virgin Hyperloop has so far been the only one to conduct a field test with people on board. The technology must enable speeds of more than 1000 km/h.

Hyperloop test with passengers in 2020