Nov. 25—In a setback for eastern Kern's aerospace industry, Virgin Galactic LLC has informed county leaders it has decided to lay off 78 people from the company's Mojave operations.

A letter the company sent to local officials Nov. 8 said the reductions — mainly among technicians, project managers and engineers at four separate addresses in Mojave — will be permanent. The county received the notice Nov. 14 but did not release it publicly until Wednesday.

The Orange County-based space tourism company did not give a reason for the layoffs in its notice, which accounted for about 42% of the people let go companywide. But in an earnings call Nov. 9, CEO Michael A. Colglazier said the cutbacks "will redirect resources towards our Delta program (ships capable of flying more frequently) as we focus the entire company on realizing the profit potential from these ships."

"Our teammates at Virgin Galactic are talented, purpose-driven and excel in their professions and it is deeply unfortunate to part ways with some of our co-workers and our friends," Colglazier said, noting the company will start next year with 840 full-time employees.

"By taking these actions now," he added, "we ensure Virgin Galactic continues to have access to the resources needed to reach positive cash flow and to deliver on our mission, bringing the wonder of space to our existing customer base and to the generations of customers who will follow."

Just prior to the layoffs announcement, Virgin Galactic posted a net loss of $105 million in the three months ended Sept. 30. That's $41 million less than it reported losing a year earlier.

The company said its revenue in the third quarter, $1.7 million, was more than twice as much as it took in during the same period last year.

Virgin Galactic may be the best known company in eastern Kern's aerospace industry, which has become a focus for the county's economic development efforts. The company has carried out innovations and tested spacecraft in Mojave alongside other, smaller aerospace businesses.

Despite its large third-quarter loss, CEO Colglazier was upbeat during the earnings call with investors earlier this month.

He praised the company's six flights with its initial ship, VSS Unity, during a period of less than six months, calling it an "unprecedented achievement in human spaceflight." Colglazier also referred to a robust backlog of customer demand.

But his bigger message was that Virgin Galactic needs to concentrate more on its Delta-class ships that, after testing expected in 2025 and a start of commercial flights in 2026, should be able to take 50% more paying passengers into suborbital space twice a week — eight times more frequently than VSS Unity can.