Cuts coming: Virgin Galactic announces it will layoff 18% of its workforce

SIERRA COUNTY, New Mexico (KVIA) -- The space tourism company Virgin Galactic is laying off about 185 employees -- or about 18% of its workforce -- multiple news outlets are reporting.

Virgin Galactic has a hub in Sierra County, New Mexico, near Truth or Consequences. Yahoo reported that the company has a targeted 400 flights a year out of the New Mexico's Spaceport America.

Reuters reported that the move was a bid to cut the company's costs, with the company expecting to save $25 million a year, and that its shares went up 14.1% Thursday after the announcement made on Wednesday.

"Cutting costs is the only way for struggling companies like Virgin Galactic to get through this economic cycle -- a wave of bankruptcies is coming for those who don't take such measures," Justus Parmar, Founder and CEO at venture capital firm Fortuna Investments, told Reuters.

ABC-7 has reached out to officials with Virgin Galactic to ask if there will be any impact New Mexico locally. A spokesperson declined to comment at this time.