Blue Origin, the aerospace company owned by Jeff Bezos, announced the layoff of 10% of its workforce, about 1,400 employees, in a major restructuring move.
CEO Dave Limp broke the news in a 10-minute emergency call, acknowledging that the company needs to make drastic changes to ensure its success over the next three to five years.
The move comes as Blue Origin is planning to accelerate production of its New Glenn rocket, which is expected to be a major competitor to Elon Musk’s Falcon 9.
With competition intensifying, the company is looking to build a more efficient, agile and customer-oriented work culture.
However, despite the push to move faster, the atmosphere within the company is said to be increasingly tense.
Several employees have alleged that the company’s performance is deteriorating, with many starting to look elsewhere regardless of whether they survive the layoffs.
Is this dismissal a turnaround strategy or a sign that Blue Origin has cracked before takeoff?
