Virgin Hyperloop confirmed on Tuesday that almost half of its employees were fired as the company shifts to freight from passenger travel. Stated that 111 people were laid off and the company layoffs would help focus on cargo delivery through hyperloop pods. These pods are jetted through vacuum tubes at more than 600 mph.
Though it seems far-fetched, it was not unexpected, according to two people who lost their jobs. The announcement officially came through a video conference. Virgin Hyperloop was founded back in 2014 as Hyperloop Technologies. The idea came from Tesla CEO Elon Musk’s idea of pod transportation with high speed. When Richard Branson joined the board of directors in 2017, the name was changed to Virgin Hyperloop.
The company has raised around $450 million so far. It is known as the only company to have successfully completed passenger rides using the technology. Recently the company decided to change direction, as the ongoing supply chain crisis continues. Also added that the changes are also due to Covid. The company states that there is strong interest from customers in cargo-based services.
Layoffs and Upheaval
A logistics provider owned by the Dubai government and majority stakeholder in Virgin Hyperloop, DP World started using Virgin Hyperloop’s technologies. Since 2020 they have been working on cargo systems using the same technology.
But the pivot from passenger transport to freight triggered doubt and internal turmoil at the company. Morale reportedly plummeted when Virgin Hyperloop co-founder and chief technology officer Josh Giegel left the company last year. Many other executives also quit the company following Giegel’s departure.
Furthermore, the layoffs and upheaval come during that time when Virgin Hyperloop is considering a merger with SPAC. However, there is no information officially about the company going public.
This hyperloop technology is expected to solve many transportation issues like traffic jams, boring commutes, and other infrastructure challenges. The competitor company, Elon Musk’s Boring Company is known to have built hyperloops. However, their loops haven’t been a success, still struggling to keep up with the speed of vehicles transiting within the tube and the clogged traffic. Virgin Hyperloop comparatively had better success. The company’s two executives zipped in a pod and went in the 500-meter rail in a low-pressure tube in the Nevada desert at a max speed of 100 miles per hour. The journey lasted 15 seconds at a fraction of the maximum speed envisioned by designers. The main challenge with the passenger pods is that it is considered to be expensive.
