Blue Origin CEO Calls All Hands Meeting; Employees Brace For Major Layoffs

Blue Origin employees are preparing for substantial job cuts as part of a strategic shift aimed at reducing costs and increasing rocket launches. The company will address the layoffs in an all-hands meeting with CEO Dave Limp on Thursday morning per Blue Origin sources.

While the precise number of layoffs remains uncertain, sources indicate that the company is expected to shed up to 2000 positions with another 500-1000 for performance review stuff. Blue Origin has yet to issue an official statement in response to inquiries regarding the layoffs.

The decision comes just weeks after the company debuted its highly anticipated New Glenn rocket, a project that has spanned three CEOs and experienced repeated delays.

As SpaceX solidified its dominance in the commercial space sector, Blue Origin remained entrenched in extensive research and development efforts. Now, the company appears to be pivoting toward streamlining operations and accelerating launch cadence.

Employee Emotions: Uncertainty and Frustration

News of the impending cuts has sparked concern among Blue Origin employees, with many blindsided by the announcement. One employee captured the mood of the workforce, stating, "Tomorrow will be a sore day. A red day. And the sun rises."

A Blue Origin employee pointed to potential overstaffing issues, saying, "Over hired. Bloated internally. I did hear they don’t want people working more, so it’s not a squeeze to get more hours for free. But honestly, I’m just waiting to see what happens like the rest of us."

For some employees, the lack of prior warning has been particularly jarring. "The vibe at work last night was rough...we were all sideswiped by this. I had no clue... I’m worried [my team] might be less than 30 after today."

Morale, which has already been shaken, is expected to take a hard hit with one employee expressing disappointment over the timing of the layoffs, given the ambitious projects still in the pipeline. "Morale is going to be low. Which sucks because we have some amazing work ahead of us"

Strategic Shift From R&D to Operational Launches

Blue Origin has historically focused heavily on development efforts, with projects such as the BE-4 and BE-3U engines, the New Glenn orbital rocket, and the Blue Moon lunar lander. However, as the industry becomes increasingly competitive, particularly with SpaceX's frequent launch cadence and cost-efficient rocket reusability, Blue Origin appears to be shifting its priorities toward execution rather than prolonged development cycles.

This realignment may help the company stay competitive in the rapidly evolving space sector, but it comes at a steep cost for many of its employees.

With layoffs expected to hit hard, the internal culture and long-term trajectory of Blue Origin remain in flux.

CEO Dave Limp is expected to provide more clarity during Thursday’s meeting, where employees will learn the extent of the cuts and the company's plans moving forward. Until then, uncertainty looms large over the workforce as Blue Origin navigates one of the most consequential restructuring efforts in its history