Cocoa, US – February 8, 2025: In a move that signals potential upheaval in the space industry, Boeing has warned employees involved with NASA’s Space Launch System (SLS) that their contracts might not be renewed, leading to significant layoffs. This development comes amid speculation that the Trump administration is considering canceling the SLS program due to its soaring costs and delays.
Boeing Signals Layoffs as NASA’s SLS Program Faces Stormy Future
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Boeing’s Vice President and Program Manager for SLS addressed approximately 800 employees in a brief all-hands meeting on February 7, 2025. According to a report by CNBC, the executive stated, “Boeing’s contracts for the rocket could end in March, and layoffs may follow if the space agency does not renew them.” This revelation was further echoed in posts on X, where users like @FOX54News noted, “On Friday, Boeing’s VP and program manager for SLS held a brief, six-minute all-hands meeting for approximately 800 employees. He said Boeing’s contracts for the rocket could end in March, and layoffs may follow if the space agency does not renew them.”
The SLS, a cornerstone of NASA’s Artemis program aimed at returning humans to the Moon, has been under scrutiny for its financial and developmental challenges. An August report by NASA’s Office of Inspector General highlighted quality issues with Boeing’s work on the Exploration Upper Stage for the SLS, adding to the program’s woes.
A Boeing spokesperson, as cited by Ars Technica, provided more context to the situation, stating, “To align with revisions to the Artemis program and cost expectations, today we informed our Space Launch Systems team of the potential for approximately 400 fewer positions by April 2025.” This statement was in line with the company’s effort to prepare for possible changes in NASA’s strategy, with the official adding, “This will require 60-day notices of involuntary layoff be issued to impacted employees in coming weeks, in accordance with the Worker Adjustment and Retraining Notification Act.”




The potential cancellation of the SLS contracts has sparked debate about the future of space exploration. Laura Forczyk, an industry observer, commented via X, “Boeing told its employees to prepare for layoffs as it anticipates SLS will suffer cancellation in the Trump Administration’s budget request. In my opinion, this is a long time coming and beneficial for the long-term success of NASA.”
While no official announcement from NASA has confirmed the cancellation, the discussions and preparations by Boeing indicate a significant shift might be on the horizon. Bloomberg reported, “Boeing Co. expects to lay off hundreds of workers on its SLS moon rocket program, fueling speculation that NASA’s marquee space exploration initiative is poised for a shake-up under a second Donald Trump administration.”
This situation raises questions about job security in regions like Brevard County, where many of these employees are based, and the broader implications for America’s space ambitions. Boeing’s proactive approach to redeploying its workforce, as mentioned by their spokesperson, “We are working with our customer and seeking opportunities to redeploy employees across our company to minimize job losses,” suggests an attempt to mitigate the impact, but the uncertainty remains palpable.
If NASA decides to cancel the Space Launch System (SLS) program, several alternatives could step in to support lunar missions. SpaceX’s Starship, already part of NASA’s Artemis program as the Human Landing System for Artemis III, could potentially take on the role of both launch vehicle and lunar lander. Users on X, like @stephenhumble11, have suggested that using Starship to replace both SLS and Orion would be cost-effective, especially since Starship is destined for the Moon anyway. Another contender is Blue Origin’s New Glenn, which, although not yet operational, has been discussed as a potential launch vehicle for NASA missions. Speculation on X, such as from @SciGuySpace, has floated the idea of Orion being launched into LEO by New Glenn, then docking with a separate stage for lunar transit. A hybrid approach involving SpaceX’s Falcon Heavy to launch Orion into orbit and then using ULA’s Centaur V upper stage for the Trans-Lunar Injection has also been proposed, as noted by Eric Berger from Ars Technica. Additionally, there’s discussion around Blue Origin‘s potential involvement, with @GravlinTheGreat on X suggesting that Blue Origin could develop a human-rated lunar capsule for New Glenn. However, each of these alternatives would require significant development, testing, and integration to match SLS capabilities, facing challenges in technical feasibility, cost, schedule, and political and economic considerations.



As the industry watches closely, the potential pivot away from SLS could herald a new era for space travel, possibly leaning more on commercial entities like SpaceX, which have already shown capabilities in heavy-lift rocket technology. However, the final decision by NASA will be crucial in shaping not only Boeing’s future but also the trajectory of U.S. space exploration in the coming years.
Sources:
CNBC, “Boeing warns moon rocket program employees of layoffs,” February 8, 2025.
Ars Technica, “Boeing has informed its employees that NASA may cancel SLS contracts,” February 7, 2025.
Bloomberg, “Boeing to Cut About 400 Jobs From SLS Moon Rocket Program,” February 7, 2025.
Posts on X (formerly Twitter) by users like @FOX54News, @LauraForczyk