Jeff Bezos’ space venture, Blue Origin, is preparing for significant workforce reductions as it looks to streamline operations and ramp up rocket launches after years of research and development. People familiar with the matter indicate that the layoffs could affect at least several hundred employees, potentially surpassing a thousand.

The company is expected to formally address the job cuts during an all-hands meeting on Thursday, led by CEO Dave Limp. The decision marks a strategic shift for Blue Origin, which has spent years developing cutting-edge space technology but is now under pressure to accelerate its commercial launch operations.

The anticipated job cuts come just weeks after the company successfully debuted its flagship New Glenn rocket, a milestone that followed years of development delays. Speaking at a conference in Washington, D.C., on Wednesday, Limp acknowledged the achievement but emphasized that the company still has a long road ahead.

“We have a lot of work to do ahead of us, and we have to get to a cadence where we’re flying very often, got to get the manufacturing to a higher cadence,” Limp said. “But it’s such a good first step to see it happen.”

Since its founding in 2000, Blue Origin has grown into a major player in the private space industry, employing around 14,000 people across multiple locations, including its headquarters in Seattle and major manufacturing and launch facilities in Florida, Texas, and Alabama. The company has a diverse portfolio that spans space tourism, moon lander development, a planned space station, and rocket engine manufacturing.

Limp, who took over as CEO in 2023 after a long tenure at Amazon, was brought in to revitalize Blue Origin’s operations following years of slow progress in bringing its ambitious projects to market. The company faces mounting pressure to ramp up New Glenn flights and fulfill more than $10 billion in launch contracts.

Blue Origin’s struggles have often been compared to those of its chief rival, Elon Musk’s SpaceX. While SpaceX has become the dominant force in commercial spaceflight—launching rockets at an unprecedented pace—Blue Origin has lagged behind, encountering delays and development setbacks. The upcoming job cuts suggest that the company is now pivoting toward a leaner, more execution-focused approach to compete more effectively in the sector.

Although the exact number of layoffs remains uncertain, insiders suggest that the restructuring aims to refocus Blue Origin’s resources on its most pressing objectives: increasing launch frequency and improving manufacturing efficiency. The move could also be part of a broader financial strategy as the company seeks to optimize operations and reduce costs.

For employees, the layoffs will mark a challenging transition, but Blue Origin maintains a robust pipeline of projects that continue to shape the future of space exploration. Whether this workforce reduction signals a short-term adjustment or a long-term restructuring remains to be seen.

With growing commercial demand for spaceflight and satellite deployment, Blue Origin’s ability to execute its ambitious vision will determine its place in the evolving space race.