Boeing announced on Saturday that around 400 employees involved in the Space Launch System (SLS) moon rocket program will face layoffs. The move comes as the costs of NASA's Artemis program continue to rise, and its schedule faces further delays.
The Artemis program, which aims to return astronauts to the Moon, was first launched during President Donald Trump's administration.
According to NY Post, the initiative has faced several setbacks, with the next mission, Artemis II, delayed from 2024 to September 2025, and Artemis III, which involves landing astronauts on the Moon, pushed back to 2026.
Boeing explained that the layoffs are due to revisions in the Artemis program and increased cost expectations.
"To align with revisions to the Artemis program and cost expectations, we informed our Space Launch Systems team of the potential for approximately 400 fewer positions by April 2025," the company said in a statement to FOX Business.
Boeing Cuts Jobs in Space Launch System Amid $93B Artemis Cost Surge
The affected employees will receive 60-day notices in the coming weeks, In accordance with federal law, known as the Worker Adjustment and Retraining Notification Act.
Boeing added that it is working to minimize job losses by offering opportunities for employees to transfer to other positions within the company.
The layoffs represent over a third of the workforce assigned to the SLS program.
Boeing, based in Seattle, has been under pressure to reduce its overall workforce in recent years, with CEO Kelly Ortberg overseeing significant job cuts and restructuring, LiveMint said.
The Artemis program's costs are expected to reach $93 billion by 2025, making it the U.S. space agency's largest current undertaking.
In November 2022, the SLS rocket launched for the first time, sending an uncrewed capsule around the Moon as part of the Artemis I mission. However, delays have become a recurring theme, hindering progress on the long-awaited return to the lunar surface.
This decision by Boeing marks a critical point for both the company and the space program as it adjusts to ongoing challenges and delays.
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