Blue Origin, the space exploration company backed by Amazon founder Jeff Bezos, is laying off 10% of its workforce as part of a significant restructuring aimed at cutting costs and sharpening focus.
The decision, which affects over 1,000 employees, was announced during an all-hands meeting Thursday morning with CEO Dave Limp.
The workforce reduction, first reported by Bloomberg, follows years of rapid expansion and development within the company.
Blue Origin did not share detailed employment figures during Thursday’s announcement but has been reported to employ between 11,000 and 14,000 workers, with more than 4,000 based in Washington state.
In a memo to employees, Limp explained that the company’s growth had led to “more bureaucracy and less focus” than necessary, particularly after a hiring spree over the last few years.
Blue Origin is now taking steps to reduce its management ranks and streamline operations in an effort to clear about $10 billion in launch contracts. The company will also eliminate positions in engineering, research and development, and project management.
The layoffs come at a time when Blue Origin is still recovering from a series of delays and challenges in its quest to build a competitive space launch system. The company’s flagship New Glenn rocket, for example, was delayed multiple times before its long-awaited debut last month. Despite these setbacks, Blue Origin remains committed to a wide-ranging space portfolio, including space tourism, lunar exploration, and the development of a space station and rocket engines.
Founded by Bezos in 2000, Blue Origin has grown rapidly in recent years, reaching a peak workforce of approximately 14,000 employees. Its headquarters are located in the Seattle area, with major manufacturing and launch sites in Florida, Texas, and Alabama.
Looking ahead, Limp outlined the company’s goals for the future, including plans for an uncrewed lunar landing in 2025 and ramping up the launch cadence for its New Glenn and New Shepard rockets. Despite the workforce reduction, Blue Origin remains focused on its vision for the future of space exploration.