Blue Origin Announces 10% Workforce Reduction Amid Restructuring
Blue Origin, the aerospace company founded by Jeff Bezos, has announced plans to lay off approximately 10% of its workforce. CEO David Limp cited rapid growth and increased bureaucracy as key factors behind the decision to streamline management and improve operational efficiency.
The layoffs primarily affect positions in engineering, research and development, and program and project management. This move comes as Blue Origin aims to reduce management layers and increase focus on its core objectives.
The company recently achieved a significant milestone with the launch of its first orbital rocket, New Glenn. However, Blue Origin faces stiff competition in the commercial space industry, particularly from Elon Musk’s SpaceX, which launched its first orbital rocket in 2010.
In a memo to employees, Limp outlined the company’s strategic priorities for 2025, emphasizing the need to scale manufacturing and increase launch cadence. He stated, “Our focus for 2025 is on scaling our manufacturing capabilities and increasing our launch frequency.”
Despite the workforce reduction, Blue Origin plans to continue investing and hiring in key areas to achieve its long-term goals. These include landing on the Moon and increasing the frequency of New Glenn and New Shepard launches.
The company is providing support to affected employees, including severance packages, COBRA coverage, and career support services. Blue Origin has also emphasized the importance of empathy and support among remaining employees during this transition period.
This restructuring aligns with a broader trend in the tech industry to reduce middle management, similar to recent moves by companies like Amazon and Meta. As Blue Origin navigates these changes, industry observers will be watching closely to see how the company positions itself for future growth and competition in the evolving space sector.
