Blue Origin Announces 10% Workforce Layoffs: Looks to Cut Costs, Increase Efficiency to Compete With SpaceX

unclear how many workers will be affected on the Space Coast

BREVARD COUNTY • MERRITT ISLAND, FLORIDA – Blue Origin, the space company founded by Jeff Bezos, is implementing widespread layoffs, affecting approximately 10% of its workforce.

Blue Origin’s 750,000 square-foot rocket manufacturing facility is located at Exploration Park on Merritt Island, just south of the Kennedy Space Center Visitor Complex.

The restructuring marks a pivotal moment for Blue Origin as it works to strengthen its competitive position in the commercial space sector while striving for more frequent and efficient rocket launches.

Blue Origin CEO Dave Limp informed employees of the decision during a meeting on Thursday, marking a significant shift as the company aims to cut costs and accelerate its rocket launch operations.

The layoffs affect around 1,400 employees across Blue Origin’s primary hubs in Brevard County, Texas, and Washington. It is currently unclear how many workers will be affected on the Space Coast.

This move comes as the company ramps up production of its New Glenn rocket, which successfully completed its years-long-anticipated debut launch on January 16 from Launch Complex 36 at Cape Canaveral Space Force Station.

Limp, who took over as CEO in late 2023 after being recruited from Amazon, acknowledged the difficulty of the decision but emphasized the need for structural changes to position Blue Origin for long-term success.

“There’s no easy way to communicate this,” he told employees.

“We’ve had a lot of successes over the last few months, but when looking at where we need to be in the next three to five years, we realized we weren’t set up for the level of success we aim to achieve.”

A key priority for the company is increasing the manufacturing efficiency of the New Glenn rocket and achieving a higher launch frequency, areas crucial for competing with Elon Musk’s SpaceX and its industry-leading Falcon 9 rocket.

Limp stressed the importance of fostering a work culture that is “quick, nimble, decisive, and very focused on our customers.”

Since taking the helm, Limp has focused on streamlining Blue Origin’s various divisions, which include projects ranging from space stations to NASA’s lunar lander program. His leadership has brought a renewed sense of urgency to the company, but some employees have expressed concerns about workplace morale amid the push for rapid progress.

Sources within the company indicate that some staff members are considering leaving regardless of whether they were affected by the layoffs.

Similar Stories