(Bloomberg) -- Virgin Galactic Holdings Inc. plans to reduce its workforce as part of a broader cost-cutting move to keep development of its next-generation launch vehicle on track.

The space tourism venture, founded by billionaire Richard Branson, is eliminating an unspecified number of workers in an effort to save cash, it said Tuesday in a statement. 

“Uncertainty has grown in the capital markets,” Michael Colglazier, Virgin’s chief executive officer, said in the statement. He cited interest rates and “geopolitical unrest” as factors limiting access to financing.

The news comes a day before the company is expected to announce its latest quarterly earnings. 

Virgin Galactic shares fell as much as 3.4% to $1.68 in US premarket trading Wednesday before paring losses. As of Tuesday, the stock had lost 50% of its value this year.   

Virgin has launched a series of flights carrying researchers and tourists to the edge of space this year with its VMS Eve carrier aircraft and space plane VSS Unity.

But it has said it doesn’t anticipate turning a profit on its flights until the debut of its larger Delta Class spaceships in 2026. 

This story was produced with the assistance of Bloomberg Automation.

(Updates with details on Virgin Galactic’s shares in fifth paragraph.)

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