Virgin Hyperloop – victim of changes due to the pandemic

Virgin Hyperloop – victim of changes due to the pandemic

New York, 2/24/2022

Futuristic transportation company Virgin Hyperloop has laid off 111 employees, nearly half of its workforce, as it turns away from passenger transportation to focus exclusively on freight. The company, formerly Hyperloop One, has developed Hyperloop capsules that travel through vacuum tubes at speeds of more than 600 km/h.

The company said it will focus on freight transportation due to global supply chain issues and changes brought on by the pandemic.

DP World, a majority stakeholder in Virgin Hyperloop, is owned by Dubai and has been developing a cargo system using the company’s Hyperloop technology since 2020. Virgin Hyperloop is currently in talks with 15 potential customers to provide the cargo Hyperloop technology.

The government of Saudi Arabia, for example, is looking at a Hyperloop route to connect the capital Riyadh with the port city of Jeddah.

The shift away from passenger transport will ease regulatory challenges, according to DP World.