Boeing has warned employees working on NASA’s Space Launch System (SLS) program that layoffs could be coming as the company faces reduced funding for the rocket’s future development. The announcement raises concerns about the stability of the program, which serves as the backbone of NASA’s Artemis missions to return humans to the Moon.
In a notice to employees released on February 7th, Boeing confirmed that potential workforce reductions are being considered due to expected budget constraints and shifting priorities within the program. The notice came in the form of a 60-day warning notice, which is required by federal law for government contractors anytime layoffs are a possibility. While the company has not specified how many jobs may be affected, sources familiar with the matter suggest that around 400 engineers, technicians, and support staff could be impacted.
NASA’s Budget Challenges Impact SLS
The warning comes as NASA faces increasing financial pressure, with the Biden administration and Congress evaluating budget allocations for Artemis missions and broader space exploration initiatives. The Fiscal Year 2025 budget request for NASA has yet to be finalized, but cost overruns in several key programs—including the SLS—have drawn scrutiny.
Boeing is the prime contractor for the SLS core stage, which provides the rocket’s primary propulsion. While the company has successfully delivered multiple stages for Artemis missions, the program has been criticized for its rising costs. A report from the NASA Office of Inspector General (OIG) last year estimated that each SLS launch costs over $4 billion, significantly higher than initial projections. The SLS program is already more than $6 billion over the original budget, and costs are only growing.
“The budget realities mean we must carefully assess our workforce and operational needs moving forward,” a Boeing spokesperson said in a statement. “We remain committed to supporting NASA’s Artemis program and ensuring mission success, but adjustments may be necessary.”
Concerns Over the Future of SLS
The potential layoffs highlight concerns about the long-term future of the Space Launch System program. While NASA has contracted Boeing for at least three more Artemis missions using the rocket, the agency is also exploring alternative launch systems, including commercial heavy-lift rockets such as SpaceX’s Starship.
Earlier this year, NASA Administrator Bill Nelson reiterated the agency’s commitment to SLS but acknowledged that cost reductions are necessary. “SLS is the backbone of our Artemis program, but we recognize that we have to make it more sustainable in the long run,” Nelson said during a recent congressional hearing.
Boeing’s announcement also comes amid broader workforce reductions across the aerospace industry. The company recently confirmed layoffs in its defense and commercial aviation divisions as it streamlines operations following supply chain challenges and declining revenues.
Impacts on Florida’s Space Coast
The potential job cuts could have a significant impact on Florida’s Space Coast, where Boeing maintains a strong presence at Kennedy Space Center and nearby facilities. Many SLS workers are based in Florida, and reductions could affect the region’s economy, which has benefited from NASA’s Artemis-driven resurgence.
“We’ve seen a major comeback in spaceflight jobs here in Florida over the past decade, largely due to Artemis,” said Dale Ketcham, vice president of Space Florida, an economic development agency. “Any layoffs would be unfortunate, but we hope Boeing and NASA can find a way forward that preserves as many positions as possible.”
The uncertainty surrounding Boeing’s SLS workforce underscores the ongoing challenges of maintaining large-scale government-backed space programs. As NASA balances ambitious lunar and Mars exploration goals with fiscal realities, companies like Boeing will have to adapt to changing priorities and budgets.
For now, Boeing has assured employees that it is working with NASA to secure funding and mitigate the impact of potential layoffs. However, as the space industry continues to evolve, the role of SLS—and Boeing’s involvement in it—remains a subject of debate.
