Blue Origin is reportedly planning to reduce its workforce by approximately 10%, or around 1,000 employees, nearly a month following the inaugural launch of its New Glenn rocket. The company aims to prioritize growth in the coming years by increasing the production and launch frequency of this large rocket.
According to an internal email sent to employees on Thursday, CEO David Limp announced the layoffs, which would impact roles in engineering, research and development, program and project management, and would streamline management layers. This email was obtained by CNN.
Following several years of delays, Blue Origin successfully launched its New Glenn rocket on January 16. The heavy-lift launch vehicle took off from Launch Complex 36 at Cape Canaveral Space Force Station, marking the first time a Blue Origin rocket achieved orbit—unlike the company’s suborbital New Shepard rocket used for space tourism. The second stage of New Glenn successfully reached its target orbit after two successful burns of the BE-3U engines, although the booster was lost during descent. A soft landing on an ocean-based platform was initially expected, but it did not occur. Nonetheless, the inaugural flight was considered a significant success.
During an all-hands call on Thursday, Limp explained that the decision to lay off more than 1,000 employees would enable Blue Origin to scale up the manufacturing of New Glenn and increase its launch frequency, as reported by Reuters.
New Glenn might provide strong competition for SpaceX, further intensifying the rivalry between Blue Origin’s founder Jeff Bezos and SpaceX’s Elon Musk. The rocket is a partially reusable, heavy-lift vehicle capable of lifting 45 metric tons to low Earth orbit and 13 metric tons to geostationary transfer orbit. It stands at 313 feet (95 meters) tall with a reusable first stage powered by seven methane-burning BE-4 engines. For comparison, SpaceX’s Falcon Heavy is a partially reusable heavy-lift rocket capable of carrying 63 metric tons to low Earth orbit and 26 metric tons to geostationary orbit.
SpaceX has long been an industry leader, while Blue Origin has gained momentum recently under new leadership. The company appointed former Amazon executive David Limp as CEO, replacing Bob Smith.
Anonymous Blue Origin employees told Reuters that Limp has been charged with streamlining the company’s business units and emphasizing New Glenn, instilling a sense of urgency after years of slow progress. However, this push for increased speed has reportedly affected morale and company culture.
While Blue Origin’s advancements in its space ambitions are commendable, they appear to have come with challenges.
