Boeing Announces Layoffs due to Delays in NASA’s Artemis Moon Missions
Boeing officials announce layoffs and reassignments
Earlier this week, senior officials from Boeing’s Space Launch System (SLS) program, David Dutcher and Steve Snell, gathered more than 1,000 employees for an all-hands meeting. During the meeting, they revealed that a significant number of layoffs and reassignments would take place among the program’s workforce. One of the reasons provided for the cuts was the shifting timelines for NASA’s Artemis lunar missions, which would rely on the SLS rocket.
A Boeing spokesperson, in a statement to our publication, confirmed the layoffs, attributing them to external factors unrelated to program performance. The company stated that it is reviewing and adjusting staffing levels.
A Decade of Development Challenges
Boeing has been at the helm of the SLS rocket’s development, which NASA plans to use for its crewed Moon missions, for nearly 15 years. The program has been criticized for its costs, as NASA spent billions of dollars on a rocket that reuses Space Shuttle main engines and other components. Originally scheduled for a late 2016 or 2017 debut, the SLS rocket faced significant delays, eventually making its inaugural flight in November 2022. The program drew further criticism from NASA’s Inspector General, who described Boeing’s management as “poor” in some instances.
Despite the challenges, the SLS rocket demonstrated exceptional performance when it successfully launched an uncrewed Orion spacecraft toward the Moon a year and a half ago. Following that mission, NASA declared the SLS rocket to be “operational,” and Boeing commenced production for future missions involving crewed lunar landings.
Inevitable Staff Reductions
In light of the completion of the developmental phase for the SLS rocket’s core stage, Boeing’s decision to scale down development activities and reduce workforce was anticipated. While the company’s statement did not disclose specific numbers, sources reveal that the cuts may potentially affect hundreds of employees. Primarily, the layoffs will impact Boeing’s rocket facilities in Alabama, Louisiana, and Florida, affecting both the core stage and the Exploration Upper Stage program.
Mission’s Uncertain Timing and External Challenges
Boeing’s reference to “external factors” pertains to the delay-prone schedules of NASA’s Artemis Program. NASA announced one-year delays for both the Artemis II crewed lunar flyby and the Artemis III lunar landing missions in January. However, there are no guarantees that these schedules will not be amended in the future. Several challenges remain for the other elements of the missions.
Artemis II faces a hurdle with the clearance of a heat shield issue concerning the Orion spacecraft before it can proceed. Artemis III, on the other hand, requires the development of a lunar lander, which SpaceX’s Starship vehicle will provide, along with spacesuits for the lunar surface, to be supplied by Axiom Space. These elements are still in the developmental phase.
Moreover, budget constraints pose an additional challenge for NASA, as the agency grapples with potential cuts after more than a decade. In a statement to Congress, NASA Administrator Bill Nelson acknowledged the tough choices the agency faces due to budget restrictions. As a consequence, there may be a reshuffling of SLS funding to support other elements of the Artemis Program.
Stretched Funding and the Path Forward
Insiders report that NASA informed Boeing earlier this year about reduced funding as SLS development neared completion. Boeing had two options: either stretch the funding it would receive or pause development for a year to cope with the Artemis delays. The choice to stretch the funds was the driving force behind the recent workforce reductions.
It would be unfair to attribute the delays in future Artemis missions to SpaceX and Axiom alone. While Congress first authorized the SLS rocket in 2010, Boeing had already received funding for related work as far back as 2007. In comparison, NASA only provided funding for the Starship lunar lander in late 2021 and Axiom spacesuits in 2022. These developments pose comparable, if not more significant, technical challenges than the SLS rocket.
