The company and Branson announced the new Monday amid tensions between the prominent investor and Saudi Arabia. Branson recently announced that he would suspend talks with the kingdom on investments in that country after the disappearance and death of Saudi journalist Jamal Khashoggi. Branson said at the time that the case "if it were true, would clearly change the ability of each of us in the West to do business with the Saudi government."
A spokeswoman for Virgin said that Branson's departure from Hyperloop One's board of directors was not related to Saudi Arabia, adding that the plan was still that Branson was spending a bit of time to stabilize the company.
Virgin Hyperloop One has also done business with the Saudi government. Earlier this year, the company announced that it would work with the kingdom to bring its technology.
Virgin Hyperloop One did not answer Monday a question from CNN Business on the fact that the deal on hyperloop in Saudi Arabia was affected by Branson's comments.
Khashoggi was seen on October 2nd on foot in the Saudi Arabian consulate in Istanbul. Saudi Arabia initially denied any involvement, but now claims the Washington Post columnist has died as a result of a hand-to-hand fight involving more than a dozen Saudi officials.
Branson joined the Los Angeles-based Hyperloop One startup last December, which was renamed Virgin Hyperloop One. The company is developing a transport concept in which pods travel hundreds of kilometers per hour in a vacuum tube. Defenders say it will be even faster than air travel.
In a statement, Branson said it was the first time in more than 20 years that he was assuming the role of president.
"At this stage of the company's evolution, I feel that it needs a more active president, able to focus on the sector and on these opportunities," said Branson in his release. "It will be difficult for me to honor this commitment because I already spend a lot of time on my philanthropic projects and the many activities of the Virgin Group."
Branson's seat on the board will be occupied by Virgin executive Patrick McCall.
