New CEO Of Blue Origin — Dave Limp — To Take Over at Jeff Bezos’s Space Company
Key Takeaways:
- Dave Limp, the senior vice president of devices and services at Amazon, will replace Bob Smith as CEO of Blue Origin.
- Limp will take over as CEO on December 4, but Smith will remain involved with Blue Origin until January 2 to help “ensure a smooth transition.”
- Limp will take the reins as Blue Origins seeks to bring several space projects to fruition.
Blue Origin announced on Monday that Dave Limp, the current senior vice president of devices and services at Amazon, will be replacing Bob Smith as the CEO of Jeff Bezos’s space company, Blue Origin.
Limp will become CEO on December 4, but Smith will remain on the team until January 2 to smooth over the transition.
Bob Smith has served as CEO since 2017 and was an executive at Honeywell Aerospace for 13 years before that. Smith led Blue Origin as it opened up several key facilities in the US, including a rocket engine manufacturing and testing site in Alabama. Jeff Bezos’s famous flight to the edge of space also occurred while Smith was at the helm.
Despite these triumphs, many of Blue Origin’s initiatives were significantly delayed during Smith’s tenure, including the BE-4 engines and New Glenn rocket, which have been set back by several years.
To add insult to injury, Blue Origin employees accused the company of fostering a sexist and toxic workplace under Smith’s leadership, and employee attrition passed 20%.
Limp’s close relationship with Jeff Bezos could spell success
Dave Limp has been working as a senior vice president at Amazon for over 13 years and is part of Amazon’s S-team, a small group of senior executives. During his time at Amazon, Limp worked closely with Jeff Bezos on the launches of Amazon’s Alexa and Echo speakers when Bezos was still CEO of the company.
This established rapport between Limp and Bezos could help Blue Origin more efficiently execute on its founder’s original vision for the company.
Limp’s appointment comes at a pivotal time in the company’s history. Blue Origin’s most recent launch of the New Shepherd 3 space tourism rocket was a failure, and the company needs to recover from that bad press.
If all goes to plan, Limp will lead Blue Origin as it increases production of the BE-4 engine, fulfills a NASA contract for a lunar lander, fixes up the New Shepherd, and launches the New Glenn rocket.
Investor outlook for Blue Origin
It’s too early to say whether Limp can set Blue Origin on the right track, but his apparent synergy and past success with Bezos on major launches is a hopeful sign for the future.
Blue Origin is not a publicly traded company, so it’s not possible to directly invest in it at this time. However, its close ties with Amazon (NYSE: AMZN) make investing in the ecommerce behemoth a viable option for those who see Limp’s appointment with bullish eyes. Alternatively, investors that believe in the future of the sector more broadly can look toward other aerospace companies and ETFs that touch on these technologies, such as Boeing (NYSE: BA), Virgin Galactic Holdings Inc. (SPCE), and ARK Space Exploration and Innovation ETF (ARKX).
The bottom line
Dave Limp will become CEO of Blue Origin on December 4, replacing Bob Smith, who will remain on the team until January 2. The pre-existing rapport between Bezos and Limp could help revitalize the company.
