Jeff Bezos' Blue Origin cuts 10% of workforce amid growth challenges

In the United States, Blue Origin, the rocket company founded by Jeff Bezos, announced significant layoffs, affecting approximately 1,400 employees, which represents about 10% of its workforce. This announcement was made during a company-wide meeting led by CEO Dave Limp on February 13, 2025, shortly after the successful debut launch of its New Glenn rocket. Limp cited excessive bureaucracy and a need to streamline operations as key reasons for these cuts, stating that the rapid growth of the company had led to inefficiencies that hindered focus and productivity. The layoffs predominantly impact employees in engineering, research and development, and project management roles, with the majority concentrated in Florida, Texas, and Washington. Limp emphasized that the company needs to shift its structure to better align with its strategic priorities, aiming to speed up manufacturing output and increase the launch cadence of its rockets. He stressed that these decisions, though difficult, are essential for Blue Origin to compete effectively against rivals like SpaceX and to ensure a successful future. Despite these cuts, Limp reassured employees that the company remains committed to its ambitious goals, including missions to the Moon and the production of efficient rocket engines. He noted that the layoffs would help optimize the company’s operational capabilities, allowing Blue Origin to land on the Moon, deliver advanced engines, and regularly launch its New Glenn and New Shepard rockets. The announcement of layoffs caused a significant stir within the company, with employees expressing concerns about the loss of institutional knowledge and the overall impact on company morale. With the company having grown rapidly to a workforce of nearly 14,000 in recent years, employees felt blindsided by the news. Limp’s plan marks a shift toward fostering a more competitive and nimble culture within the organization, a move that some employees feared might compromise the values and stability cultivated in earlier years under previous leadership.