Blue Origin Takes Bold Step: Jeff Bezos' Space Firm Cuts 1,400 Jobs to Boost Rocket Launch Strategy

Blue Origin, Jeff Bezos’ rocket company, is set to lay off approximately 1,400 employees, which constitutes about 10% of its workforce, as revealed in an internal memo obtained by BBC News. Chief Executive Dave Limp explained that these layoffs aim to streamline managerial positions and concentrate resources on increasing the frequency of rocket launches. The company is coming off the successful test flight of its New Glenn rocket, an important milestone that signifies its competitive edge in the dynamic private space sector.

Established in 2000, Blue Origin has remained a significant player in the space race, though it has lagged behind SpaceX, founded by Elon Musk. Limp’s internal email highlighted the need for a transformation in the organizational structure to align with the company’s current objectives, stating a commitment to enhancing manufacturing capabilities and launch efficiency post-2025.

The layoffs will not only affect management roles but also impact the research and development (R&D) and engineering departments. In 2023, Bezos appointed Limp, who previously worked in Amazon’s device unit, as the new leader of Blue Origin as part of a strategic restructuring focused on the development of the New Glenn rocket.

The New Glenn, named after legendary astronaut John Glenn, is designed to carry significant payloads, including satellites, into space, and is considered more powerful than SpaceX’s Falcon 9. Bezos envisions utilizing this rocket in Project Kuiper, a venture aimed at launching thousands of low-earth satellites for broadband services that would compete directly with Musk’s Starlink. This pivot marks a determined effort by Blue Origin to enhance its position in the aerospace industry amid fierce competition.