Blue Origin Cuts Jobs: What Does This Mean For Its Space Ambitions?

Jeff Bezos’ space company, Blue Origin, has announced plans to lay off approximately 10% of its workforce as part of efforts to reduce costs and ramp up its long-term growth.

Why Is Blue Origin Laying Off Employees?

Blue Origin has confirmed that it will cut hundreds of jobs, possibly exceeding 1,000 employees. According to Bloomberg News, this reduction affects about 10% of the company’s workforce.

The layoffs are part of Blue Origin’s larger effort to focus on its long-term growth goals. In an all-hands meeting on Thursday, CEO Dave Limp announced that this decision to shed jobs was essential for scaling up the company’s manufacturing capabilities and increasing launch frequency.

According to Reuters, Limp also mentioned that these layoffs would help make Blue Origin more efficient as it focuses on its flagship New Glenn rocket.

Blue Origin’s New Glenn Rocket

The timing of these layoffs comes just a month after Blue Origin’s much-anticipated New Glenn rocket successfully launched. The rocket, which had suffered numerous delays and leadership changes over the years, marked a significant milestone for the company. Launched on 16 January from Cape Canaveral Space Force Station’s Launch Complex 36, New Glenn became the first Blue Origin rocket to reach orbit.

The heavy-lift vehicle’s second stage achieved its target orbit following two successful burns of the BE-3U engines. However, despite the company’s efforts to land it on an ocean-based platform, the booster was lost during its descent. While the booster landing didn’t go as planned, Blue Origin’s team still considers the inaugural flight of New Glenn a significant achievement.