Blue Origin Lays Off 10% of Workforce to Focus on New Glenn Rocket as Part of Cost-Cutting Measures

Insider Brief

• Blue Origin announced that it would lay off approximately 10 percent of its workforce, impacting around 1,400 employees as part of an effort to streamline operations and improve its competitiveness in the space industry.
• The layoffs, which primarily affect employees in Florida, Texas, and Washington, are part of Blue Origin’s broader efforts to scale up production of New Glenn.
• This restructuring comes as Blue Origin faces internal pressures to streamline its various business units, including projects related to space stations and lunar landers for NASA, while prioritizing New Glenn development.

Blue Origin is reportedly undergoing significant changes as part of an effort to streamline operations and improve its competitiveness in the space industry. The company announced in an all-hands meeting on Thursday that it would lay off approximately 10 percent of its workforce, impacting around 1,400 employees. This decision comes as Blue Origin prepares for the next phase of development for its New Glenn rocket, which is essential to the company’s long-term strategy.

The layoffs, which primarily affect employees in Florida, Texas, and Washington, are part of Blue Origin’s broader efforts to scale up production of New Glenn. The company’s goal is to increase the rocket’s launch cadence, a critical step in catching up to competitors like SpaceX and its Falcon 9 rocket.

CEO Dave Limp, who was appointed to lead Blue Origin in late 2023, acknowledged the difficulty of the decision. “There’s no easy way to communicate this,” he said in the meeting. While Blue Origin has seen some successes, Limp pointed out that the company had not set itself up for the level of success it aims to achieve in the next three to five years.

To meet these ambitious goals, Blue Origin will need a more focused and agile organizational culture. Limp emphasized the need for the company to be “quick, nimble, decisive, and very focused on our customers” to make the necessary progress. This restructuring comes as Blue Origin faces internal pressures to streamline its various business units, including projects related to space stations and lunar landers for NASA, while prioritizing New Glenn development.

Some employees have expressed concerns about the impact of these changes on morale and company culture, with reports of staff members seeking new opportunities despite the layoffs. As Blue Origin moves forward with its plans, it will need to balance its push for speed with maintaining the culture that has supported its innovations in the space sector.

Image credit: Blue Origin