Boeing, the main contractor for NASA’s Space Launch System (SLS) rocket, is bracing for potential cancellation of the program, Ars Technica reports. On Friday, David Dutcher, Boeing’s SLS program manager, called a brief all-hands meeting to warn employees about possible layoffs. He announced that contracts might end in March, which could lead to job cuts. The meeting was short, scripted, and without questions.

Boeing gave a 60-day notice under the Worker Adjustment and Retraining Notification (WARN) Act, which requires big employers to warn workers before mass layoffs. A spokesperson from Boeing mentioned they might cut about 400 jobs by April 2025, due to changes in the Artemis program and cost considerations. They are trying to find other jobs within the company for affected workers.

This news comes as President Trump’s budget proposal for 2026 is expected, which might not fully fund the SLS. There’s debate within NASA and the White House about the rocket’s future. Some want to cancel the SLS to move to cheaper, commercial alternatives, while others support finishing planned missions first.

Commercial alternatives could be cheaper and better

Critics argue that the SLS is too costly, with each launch over $2 billion, ignoring payload or ground system costs. They believe it slows down space progress because contractors might prolong work to keep funding coming. However, NASA insists the SLS is vital for the Artemis missions to the Moon.

The SLS was meant to launch by 2016 but only flew in 2022. It has cost NASA around $3 billion annually, using parts from the retired Space Shuttle. Meanwhile, newer companies like SpaceX and Blue Origin have developed more cost-effective, reusable rockets. This situation shows the tension between traditional government contracts and emerging commercial space ventures.

In particular, advocates for replacing the SLS with SpaceX’s Starship highlight several key arguments: Starship is designed to be fully reusable, potentially slashing launch costs dramatically compared to the SLS’s single-use design. It boasts a higher payload capacity, which could accelerate lunar and Mars missions. Additionally, Starship’s development leverages private investment, reducing taxpayer burden, and its rapid development cycle promises quicker advancements in space travel technology, potentially outpacing the SLS’s slow and costly progress.

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