(VOR News) – Blue Origin has made the decision to fire 10% of its workforce, or over 1,000 employees, in an attempt to streamline operations and cut down on red tape.

On February 13, Blue Origin CEO Dave Limp informed staff members of the impending layoffs. Limp said that the rest of the company would be laid off, including the management.

“We hired and grew at a never-before-seen rate in the last few years, which led to more red tape and less concentration,” he stated in a corresponding email that SpaceNews was able to receive. “In recent years, we have undergone significant growth and expansion.” Following a meeting when he announced the layoffs, the recipients received the email.

It also became clear that in order to make sure that our operations closely align with the implementation of these priorities, we needed to restructure the structure of our organisation. This is a very obvious problem.

He heard Blue Origin say the following:

“Regrettably, due to this situation, we were necessitated to terminate certain positions in engineering, research and development, and program and project management, in addition to diminishing the hierarchy of management.”

The layoffs and the extent of their impact stunned a significant number of people. With the successful inaugural flight of its New Glenn rocket, the corporation just achieved a significant milestone.

The company was working on several projects, such as the Blue Moon lunar lander and the Blue Ring orbital transfer vehicle, while also increasing the production of the New Shepard rocket and conducting suborbital launches with it. These events all took place simultaneously.

Limp’s email states that the layoffs took place following the development of an annual operational plan and a “growth strategy” for 2025 by the company’s senior leadership.

The CEO informed the media that our primary objective for 2025 and beyond is to swiftly, decisively, and effectively enhance our manufacturing output and launch frequency for our clients.

“Our customers are Blue Origin’s number one priority.”

Another day had gone by after Limp’s talk at this location’s 27th Annual Commercial Space Conference. The proclamation was Blue Origin issued the following day. He noted that the company’s founder, Jeff Bezos, had requested his assistance in late 2023 to strengthen the business’s decision-making capabilities.

This was brought up during a fireside discussion at an event. Plans for layoffs were not mentioned by him. Limp had no prior experience in the aerospace business when he joined Blue Origin. He had previously had a prominent administrative position at Amazon that was centred on consumer products.

Limp claims that Bezos questioned if Blue required more sophisticated technical expertise. We required greater manufacturing skills, more decisiveness, and better planning. These were the items we needed.

According to Limp, he comprehends and concurs with this conclusion. “During the past year, we have achieved substantial progress in fundamentals, acted promptly, and transformed into a world-class Blue Origin manufacturing company while focussing the organisation,” he stated to the press.

This project has, in my opinion, progressed. We also have a lot of work ahead of us this year. He asserted that these alterations had already led to staffing changes before the layoffs, which he ascribed to variations in leadership styles.

I replaced around half of my employees in the first year. “That is likely accurate,” he stated, although he did not identify his staff.

“That is likely accurate.” We have also implemented other reorganisations, some of which have been significant. The Blue Origin company’s operations and production divisions have received a lot of attention as a result of these reorganisations, but in my view, they were not as well-structured as they ought to have been considering the circumstances.

“I am highly confident in the vast opportunities before us and have never been more optimistic about our mission,” he stated in the message. He added that Blue Origin intends to employ “hundreds” of workers this year.

The document states, “We will become a more robust, agile, and customer-centric organisation that consistently fulfils and surpasses our obligations.”

SOURCE: SN