Just a month after Blue Origin puts the long-running Glenn Rocket into orbit, the Jeff Bezos-backed space company is reportedly preparing for its first round of layoffs. This move raises questions about its ability to compete with SpaceX. SpaceX continues to dominate the commercial space industry.
According to an exclusive report from Bloomberg, Blue Origin is cutting around 10% of its workforce as part of its efforts to reduce costs and focused resources after years of development.
The report revealed that CEO Dave Limp confirmed work cuts during Thursday’s All-Hand meeting, based on an internal meeting. Bloomberg first reported workforce cuts.
“Jeff Bezos’ Space Company Blue Origin LLC cuts approximately 10% of its workforce, which is a major aim to refocus on significant costs and resources after years of development work. It’s a pullback.”
Blue Origin lays out 1,400 employees as SpaceX keeps its lead in commercial space races
Blue Origin has approximately 14,000 employees at its Seattle headquarters and operates in Florida, Texas and Alabama. A 10% reduction means that around 1,400 employees will be let go, focusing on streamlined management.
“The rocket and engine makers laid out the HR shaking during an All-Hand employee meeting with CEOs Dave Limp and Dave Limp on Thursday morning, Bloomberg reported.
On January 16th, the company’s new Glen Rocket was launched by Cape Canaveral, sending the blue ring Pathfinder test satellite into orbit. However, the rocket’s first-stage reusable booster failed to land on a barge in the Atlantic. SpaceX learned and sent StarLink satellites into orbit on a daily basis with reusable boosters.
The launch was a key milestone in blue origins that advance in a highly competitive industry. However, challenges remain, particularly in improving the booster recovery process. The company plans additional test flights before the new Glenn works perfectly.
Last August, Bloomberg highlighted past setbacks, including a factory accident that destroyed a future new Glen Rocket. The company also struggles with development delays and the corporate culture that some insiders describe as slowing down.
Bezos and Musk have been in the battle for space domination for a long time, with SpaceX moving forward. In the third quarter of 2024, SpaceX processed 86% of all Upmass launches. The StarLink network has also solidified its lead in the global satellite internet market.
Founded in 2000, Blue Origin began with suborbital flight using the new Shepard Rocket. The company gradually moved towards orbital missions, facing new technical hurdles along the way.
Despite the delays and set-offs, the new Glenn’s recent flights show progress. The company is also working on Lunar Landers, and is involved in NASA’s Artemis program, establishing it as a challenger in the space industry.
It remains to be seen whether Blue Origin can close the gap in SpaceX, but it is clear that the competition is not slowing down.
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