Jeff Bezo’s private space exploration company, Blue Origin, is laying off 10% of its workforce as part of a strategic restructuring to cut costs and increase the focus on rocket launches. This decision comes as the company seeks to streamline its operations and better position itself for future growth.
The company, one of the largest private space firms in the United States, made the announcement during an internal employee meeting on Thursday morning. CEO Dave Limp addressed the staff and revealed that the layoffs will affect approximately 1,000 employees. The move, reported by Bloomberg and AFP, impacts about 10% of Blue Origin’s estimated 11,000 employees, according to PitchBook.
In a memo sent to employees, CEO Limp explained that the company’s rapid growth had led to increased bureaucracy, which had started to hinder its focus. “The rapid growth led to more bureaucracy and less focus,” Limp stated, referencing the hiring spree over the last few years. While acknowledging Blue Origin’s recent successes, he admitted that the company had not fully aligned with its long-term goals. He added, “We just came to the painful conclusion that we aren’t set up for the kind of success we wanted to achieve.”
The layoffs will affect key departments including engineering, research and development (R&D), and program/project management. The company is also scaling back its management structure to streamline operations and direct more resources toward increasing the frequency of rocket launches.
These cuts come just a month after Blue Origin’s flagship New Glenn rocket had its debut launch, following multiple delays and setbacks. CEO Dave Limp, who joined Blue Origin in 2023 after leaving Amazon, has focused on setting the company back on track following a period of slow progress in research and development.
Despite the setbacks, Blue Origin has ambitious plans for the future. The company aims to ramp up New Glenn flights and secure up to $10 billion in contracts. Additionally, it is targeting a mission to land an uncrewed vehicle on the moon by 2025. These goals align with the company’s long-term vision to enhance its presence in space exploration and contribute to the growing commercial space industry.
In a challenging environment for space companies, Blue Origin is restructuring to focus its efforts on future success by cutting costs, improving efficiency, and increasing its competitiveness in the market. The company’s ability to adapt to the rapidly evolving space industry will likely determine its future growth and the role it plays in the next era of space exploration.
