Blue Origin, the spaceflight company owned by Amazon founder Jeff Bezos, is cutting 1,400 jobs—around 10% of its workforce—as it shifts focus to ramping up rocket production and increasing launch frequency.
In an internal memo seen by Business Matters, Blue Origin CEO Dave Limp said the job cuts would trim managerial ranks while reducing roles in research and development (R&D) and engineering. The decision follows the company’s first successful test flight of its New Glenn rocket, a major milestone in its space ambitions.
Founded by Jeff Bezos in 2000, Blue Origin has been a key player in the private space industry but has often been outperformed by rival SpaceX. The company is now restructuring to speed up manufacturing and launch operations, aiming to close the gap with Elon Musk’s dominant space firm.
“Our primary focus in 2025 and beyond is to scale our manufacturing output and launch cadence with speed, decisiveness, and efficiency for our customers,” Limp told employees.
The cuts are part of a broader strategic shift that prioritises the New Glenn rocket, a powerful heavy-lift launch vehicle designed to carry large payloads and satellites into space.
Named after John Glenn, the first American astronaut to orbit Earth, New Glenn is designed to be more powerful than SpaceX’s Falcon 9, with greater satellite-carrying capacity.
Bezos intends to use New Glenn to support Project Kuiper, his ambitious plan to deploy thousands of low-earth orbit satellites to provide global broadband services. The project is a direct competitor to Musk’s Starlink network, which already has a strong presence in the satellite internet market.
Blue Origin’s leadership shake-up began in 2023, when Dave Limp—formerly head of Amazon’s devices division—was appointed CEO to accelerate the company’s progress. The New Glenn launch in January was a critical step in proving Blue Origin’s capabilities, but challenges remain.
Despite its deep financial backing from Bezos, Blue Origin has lagged behind SpaceX, which has pioneered reusable rockets and operates at a higher launch frequency.
By cutting costs and shifting resources toward faster, more frequent launches, Blue Origin hopes to become a stronger competitor in the commercial space race. However, the layoffs highlight the challenges of balancing innovation with financial sustainability in an industry where efficiency and speed are key.
As Blue Origin repositions itself, the success of New Glenn and Project Kuiper will be crucial in determining whether Bezos can truly challenge Musk’s dominance in space exploration and satellite services.
