Abdelrahman
Blue Origin, the space exploration company founded by Jeff Bezos of Amazon, has announced a reduction of 10% of its workforce in an effort to reclaim its position against its competitor, SpaceX, owned by Elon Musk.
In a communication to employees, CEO Dave Limp indicated that the organization has expanded significantly over recent years, resulting in increased bureaucracy and a decline in focus. “We realized that we had more layers than necessary and needed to streamline our efforts,” he stated.
Limp explained that the decision to reduce staffing was made this year and would affect positions in engineering, research and development, as well as program and project management. The company is also looking to simplify its management structure.
“Our main goal for 2025 and beyond is to enhance our production capacity and launch frequency swiftly and efficiently for our clients,” Limp expressed in an email to staff. “It’s become evident that we need to restructure our organization to better align our roles with these priorities.”
If the layoffs proceed as described, over 1,000 jobs across the organization will be eliminated. Although Blue Origin did not reveal specific headcount figures at the time, reports have suggested that the company employs between 11,000 and 14,000 individuals, with over 4,000 based in Washington state.
The effect of these layoffs on the Washington workforce is still uncertain. Established in 2000, Blue Origin operates manufacturing facilities in Kent and has launch sites located in various parts of the country, including Huntsville, Alabama, Cape Canaveral, Florida, and west Texas.
According to four employees who spoke with The Seattle Times, the announcement of layoffs caught many by surprise. They noted the lack of clarity in how the company determined which positions to eliminate and expressed concerns about the remaining workforce’s ability to achieve performance targets with fewer personnel. Three laid-off employees chose to remain anonymous to safeguard their future job prospects, while a fourth, who retained their position, also requested anonymity to protect their current role.
A Kent-based engineer who was let go reflected on a recent team meeting, joking that the anticipated workload seemed to promise job security. However, they estimated that about 25% of their team’s employees were now terminated.
“There was a palpable sense of loss this morning,” the employee remarked, adding that the organization would inevitably lose valuable knowledge as a result of these changes.
Employees were initially alerted to the potential layoffs on Wednesday with a vague invitation to a virtual all-hands meeting scheduled for the following morning, which advised them to work from home if possible.
During a video call lasting approximately eight minutes, Limp announced the layoffs alongside other senior leaders. Employees were not allowed to pose questions during the announcement.
Following the meeting, Blue Origin sent out notifications to some employees indicating their job security, while others received notices of their termination.
“It felt like a punch to the gut; I’m unsure what I could have done differently,” shared a Kent-based engineer who had been with the company for less than a year prior to being let go.
The announcement of layoffs comes on the heels of a successful launch of the New Glenn orbital rocket after several delays, marking significant progress for Blue Origin, which has often been viewed as behind SpaceX in the race for advancements in space technology.
Following the launch, Jarrett Jones, Senior Vice President of New Glenn, described the achievement as heralding a new chapter for Blue Origin and the commercial space sector, noting the company’s commitment to increasing its manufacturing capacity and launch frequency.
Experts suggest that Blue Origin’s recent moves towards efficiency may mirror strategies employed by Amazon. Limp, who joined Blue Origin in 2023, previously led Amazon’s devices and services division. Amazon CEO Andy Jassy has recently emphasized reducing bureaucratic barriers and improving operational efficiency.
Sean McClinton, the director of entrepreneurship at Space Northwest, observed that Limp has initiated a cultural shift within Blue Origin. His predecessor, Bob Smith, known for his experience in traditional aerospace, was expected to elevate the company but, according to McClinton, the organization expanded unnecessarily and became less agile under his leadership.
McClinton referenced Bezos’ original motto for the company – “gradatim ferociter,” meaning “step by step, ferociously,” which, along with the imagery of a tortoise in the company’s branding, was intended to represent a steady and careful approach to competing in the space race. However, SpaceX has surged ahead, leading McClinton to note, “While the tortoise may eventually win, it needs to be in motion.”
Looking back, several employees reported signs that the company was heading towards cutbacks, including a toned-down holiday celebration, the decision not to renew contractor roles, and minimal internal recognition after the New Glenn launch.
“We celebrated the launch with just a pizza party,” remarked one production control employee involved in the launch effort at Blue Origin’s Florida site who was also laid off on Thursday.
In his message to employees, Limp expressed optimism about the company’s future, outlining a bold vision that includes lunar landings, delivering a significant volume of engines, and establishing a regular launch schedule for the New Glenn and New Shepard, the company’s space tourism vehicle. He also assured employees that recruitment would continue.
“We are dedicated to investing in innovation and hiring hundreds of individuals in areas that will enable us to meet our objectives and serve our clients effectively,” Limp affirmed. “We are committed to becoming a more agile, customer-centric organization that consistently fulfills and exceeds our commitments.”
Contributions to this article were made by Dominic Gates, an aerospace reporter for The Seattle Times.
