CNBC by Michael Sheetz 10/1/2021
Turmoil at Bezos’ Blue Origin: Talent exodus came after CEO’s push for full return to the office
Key Points
• Attrition at Jeff Bezos’ Blue Origin has steadily climbed, passing 20% for this year, multiple people familiar with the situation told CNBC.
• Multiple people told CNBC that the departures are a direct reflection on the leadership of CEO Bob Smith.
• The central sticking point, and cause cited by many people who recently left, was Smith’s strong push this year for all Blue Origin employees to return to the office.
• During Smith’s tenure the company has struggled to deliver on multiple major programs, highlighted by Blue Origin’s chief operating officer leaving late last year.
Jeff Bezos’ Blue Origin is suffering from an elevated turnover rate, CNBC has learned, with the space company losing talent primarily from CEO Bob Smith’s pressure to return to the office.
A Blue Origin spokesperson told CNBC that attrition “has never exceeded 12.7%” on an annualized rate, which measures personnel losses over the 12 months.
While that’s notably above the company’s typical attrition of 8% to 9% a year, multiple people familiar with the situation told CNBC that, measuring from the start of the calendar year, attrition has already exceeded 20% for 2021 – noting that Blue Origin’s lower rate includes months of data before the recent surge of employees leaving.
“We are seeing attrition rates comparable to those reported by other companies as part of what many are calling ‘The Great Resignation,’” a Blue Origin spokesperson said in a statement.
Given that Blue Origin has nearly 4,000 employees, the departures represent hundreds of personnel this year. The company’s spokesperson told CNBC that Blue Origin’s total headcount has grown by just over 450 people since the end of last year, from 3,503 employees to 3,957 as of August.
One person explained that losing talent causes widespread delays for Blue Origin’s programs, as getting new hires up to speed can take from six months to a year.
More:
https://www.cnbc.com/2021/10/01/jeff-bezos-blue-origin-talent-exodus-ceo-pushed-return-to-office.html
