Boeing Faces 400 Layoffs in SLS Program Amid NASA Artemis Delays

Boeing has announced potential layoffs impacting approximately 400 employees in its Space Launch System (SLS) moon rocket program. The decision reflects revisions to NASA's Artemis program and cost expectations. Boeing will issue 60-day layoff notices in the coming weeks while working to reassign affected employees within the company. 

"We are working with our customer and seeking opportunities to redeploy employees across our company to minimize job losses," a Boeing spokesperson stated.

NASA's Artemis program, launched during the Trump administration, aims to return astronauts to the moon. However, delays and rising costs have disrupted the schedule. Artemis 2, originally slated for late 2024, is now set for September 2025, while Artemis 3, planned for late 2025, has been postponed to September 2026. NASA has emphasized that the SLS remains "essential" to the Artemis program, despite speculation about its future due to high costs.

The SLS has faced scrutiny for budget overruns and development delays. Initial estimates projected a total cost of US$18 billion, but expenditures reached US$23.8 billion by the rocket's first flight in 2022. A 2022 report estimated that each SLS launch would cost over US$4 billion for the first four Artemis missions.

"To align with revisions to the Artemis program and cost expectations, we informed our SLS team about the potential for approximately 400 fewer positions by April 2025," Boeing stated. The company currently employs around 1,100 workers on the SLS program, making the reduction a significant adjustment.

"NASA and its industry partners continuously work together to evaluate and align budget, resources, contractor performance, and schedules to execute mission requirements efficiently, safely, and successfully. NASA defers to its industry contractors for more information regarding their workforces," the agency stated.

Despite cost concerns, NASA plans to use the SLS for at least 10 Artemis missions, supporting long-term lunar exploration, including the establishment of a permanent outpost on the moon's surface. Boeing's layoffs come amid ongoing discussions between the White House and NASA regarding the Artemis program's future, with some advocating for a transition to commercial launch systems.

While the SLS remains the only human-rated deep-space launch vehicle that has flown beyond the moon, alternatives like SpaceX's Starship are emerging as cost-effective options for lunar missions. SpaceX has secured nearly US$4 billion in NASA contracts to use Starship as a lunar lander for Artemis missions. Unlike Boeing's cost-plus contract for the SLS, SpaceX operates under fixed-price agreements, meaning the company does not receive additional funds if costs exceed projections.