February 8th, 2025

Boeing has informed its employees that NASA may cancel SLS contracts

Boeing warned employees of potential layoffs due to possible NASA SLS contract cancellations, with 400 jobs at risk by April 2025 amid ongoing discussions about the program's future and costs.

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Boeing has informed its employees that NASA may cancel SLS contracts

Boeing has alerted its employees about the potential cancellation of NASA's Space Launch System (SLS) contracts, which could lead to significant layoffs. During a brief all-hands meeting, Boeing's vice president, David Dutcher, indicated that contracts might end in March, prompting the company to prepare for approximately 400 job reductions by April 2025. This notification aligns with the Worker Adjustment and Retraining Notification Act, requiring Boeing to inform employees of potential layoffs 60 days in advance. The uncertainty surrounding the SLS program comes amid ongoing discussions within the White House and NASA regarding its future, with some advocating for its cancellation due to high costs and delays. Critics argue that the SLS, which has faced significant budget overruns and delays since its inception in 2011, is less efficient compared to emerging private space launch options like SpaceX and Blue Origin. The SLS program has consumed around $3 billion annually, and its first flight occurred only in late 2022, despite initial plans for a 2016 launch. The upcoming budget proposal from the Trump administration may further influence the fate of the SLS program.

- Boeing is preparing for potential layoffs due to possible cancellation of NASA's SLS contracts.

- Approximately 400 positions may be cut by April 2025 as part of the WARN Act requirements.

- The SLS program has faced criticism for its high costs and delays compared to private space launch alternatives.

- Ongoing discussions within the White House and NASA are focused on the future of the SLS and Artemis programs.

- The SLS has cost NASA around $3 billion annually since its development began in 2011.

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