Blue Origin, the aerospace company founded by billionaire Jeff Bezos, expects to break up a corporate partnership formed years ago to build a commercial space station, reassigning staff, and changing leadership as it adapts to more urgent priorities. The changes come amid a renewed push by companies to win contracts to replace the International Space Station, which is due to retire in 2030. The move is the latest sign of the challenges facing industry plans to develop private replacements for the aging station.
In the past, Blue Origin partnered with Colorado-based Sierra Space to propose building a commercial space station known as Orbital Reef. But the partnership has stalled, with no progress in developing a spacecraft capable of carrying people to the orbiting structure. Blue Origin redirected resources from the project to other programs, such as a new moon lander contract with NASA and a closely held in-space mobility project. Earlier this year, the company reassigned most of its employees working on Orbital Reef to other projects. Brent Sherwood, head of Blue Origin’s Advanced Development Programs overseeing Orbital Reef, intends to leave the company by the end of the year, according to several people familiar with the changes.
Sources close to the matter told CNBC that multiple Blue Origin staffers are leaving the company, with many of those workers telling their colleagues they loved their jobs and bought into Bezos’ vision. Multiple former Blue Origin employees spoke to CNBC on condition of anonymity, fearing retribution or loss of job opportunities.
The departures are also a reflection of Blue Origin’s struggle to compete with the success of rival SpaceX, which has already launched two crewed missions using its Starship and New Shepard vehicles. A third New Shepard flight is expected this fall, though it won’t be operated. The company has also been unable to secure a contract to carry astronauts on its giant rocket, New Glenn.
But despite the disappointment over recent setbacks, Blue Origin continues pursuing its long-term vision for human space travel. Bezos has sold $1 billion of Amazon stock a year to fund the development of his space venture, and it is believed he will increase those stake sales soon. He is also pouring billions into developing a giant rocket, New Glenn, that can carry people into orbit, and he’s seeking to win contracts to launch satellites for the Department of Defense on large reusable rockets. That is the path that former deputy administrator of NASA Lori Garver said she expects Blue Origin to follow. “I think he’s going to have to refocus the organization and take on a much more incremental approach,” she said. “The pace of SpaceX spoils us, and I think they are just setting the bar so high for everybody else.”
