Florida’s Space Industry Faces Workforce Reductions

Several hundred Floridians are facing layoffs after two major aerospace contractors announced cuts to their workforce last week. Boeing’s Space Systems division warned that up to 400 employees assigned to work on contracts involving NASA’s Space Launch System faced losing their jobs. At the same time, Blue Origin made cuts to staffing on their New Glenn heavy booster program. Both companies have offices nationwide but maintain a sizeable workforce in Florida.

Boeing Layoffs
Boeing has warned employees working on NASA’s Space Launch System (SLS) program that layoffs could be coming as the company faces reduced funding for the rocket’s future development. The announcement raises concerns about the program’s stability, which serves as the backbone of NASA’s Artemis missions to return humans to the Moon.

In a notice to employees released on February 7th, Boeing confirmed that potential workforce reductions are being considered due to expected budget constraints and shifting priorities within the program. The notice came in the form of a 60-day warning notice, which is required by federal law for government contractors anytime layoffs are a possibility. While the company has not specified how many jobs may be affected, sources familiar with the matter suggest that around 400 engineers, technicians, and support staff could be impacted.

Boeing’s warning to employees comes as NASA faces increasing financial pressure, with the Trump administration and Congress evaluating budget allocations for Artemis missions and related contracts. NASA’s cost overruns in several key programs—including the SLS—have drawn scrutiny.

Boeing is the prime contractor for the SLS core stage, which provides the rocket’s primary propulsion. While the company has successfully delivered multiple stages for Artemis missions, the program has been criticized for its rising costs. Last year, a report from the NASA Office of Inspector General (OIG) estimated that each SLS launch costs over $4 billion, significantly higher than initial projections. The SLS program is already over $6 billion over the original budget, and costs are only growing.

“The budget realities mean we must carefully assess our workforce and operational needs moving forward,” a Boeing spokesperson said in a statement. “We remain committed to supporting NASA’s Artemis program and ensuring mission success, but adjustments may be necessary.”

Earlier this year, then NASA Administrator Bill Nelson reiterated the agency’s commitment to SLS but acknowledged that cost reductions are necessary. “SLS is the backbone of our Artemis program, but we recognize that we have to make it more sustainable in the long run,” Nelson said during a recent congressional hearing.

The potential job cuts could have a significant impact on Florida’s Space Coast, where Boeing maintains a strong presence at Kennedy Space Center and nearby facilities. Many SLS workers are based in Florida, and reductions could affect the region’s economy, which has benefited from NASA’s Artemis-driven resurgence.

“We’ve seen a major comeback in spaceflight jobs here in Florida over the past decade, largely due to Artemis,” said Dale Ketcham, vice president of Space Florida, an economic development agency. “Any layoffs would be unfortunate, but we hope Boeing and NASA can find a way forward that preserves as many positions as possible.”

Blue Origin Lays Off 1400 Workers
Blue Origin, the commercial space company founded by Jeff Bezos, is preparing for significant layoffs as part of a strategic pivot aimed at reducing R&D costs and focusing on ramping up rocket launches. The announcement comes after years of extensive research and development, with the company now looking to streamline operations.

In a company-wide virtual meeting on February 14th, CEO Dave Limp notified employees of a 10 percent reduction in the company’s workforce of about 1400 employees. Limp attributed the cuts to a strategic realignment of the company, shifting the focus from research and development (R&D) to actual launch operations. “We just came to the painful conclusion that we aren’t set up for the kind of success that we really wanted to have,” Limp told employees in the meeting announcing the layoffs.

Fortunately for Floridians, the 1400 cuts were “across the board,” meaning that many of the cuts were in other states. The company, headquartered in Washington State, maintains launch facilities in Florida and Texas, engine facilities in Huntsville, Alabama, as well as other facilities in Virginia, Colorado, California, Arizona, and Washington DC.

As a relatively young commercial spaceflight company, Blue Origin is working to meet its obligations to provide launch vehicles under NASA Artemis contracts, as well as providing commercial launch services for Bezo’s other company, Amazon. Amazon is currently building its own satellite internet service known as Project Kuiper. Set to compete with Elon Musk’s Starlink, the first few Kuiper launches have been contracted their first few launches with other companies, such as ULA.

Bezos has said on social media that he is currently focused on the next launch of the company’s New Glenn heavy-lift rocket, which he anticipates will happen in late spring. The company’s first-ever New Glenn launch took place last month. While the launch and orbital testing was successful, the booster was lost in a landing attempt onboard a drone ship.

Some sources are reporting that the cuts were “across the board.” The company, headquartered in Washington State, maintains launch facilities in Florida and Texas, engine facilities in Huntsville, Alabama, as well as other facilities in Virginia, Colorado, California, Arizona, and Washington DC.

As a relatively young commercial spaceflight company, Blue Origin is working to meet its obligations to provide launch vehicles under NASA Artemis contracts, as well as providing commercial launch services for Bezo’s other company, Amazon. Amazon is currently building their own satellite internet service known as Project Kuiper. Set to compete with Elon Musk’s Starlink, the first few Kuiper launches have been contracted their first few launches with other companies, such as ULA.

Bezos has said on social media that he is currently focused on the next launch of the company’s New Glenn heavy-lift rocket, which he anticipates will happen in late spring. The company’s first-ever New Glenn launch took place last month. While the launch and orbital testing was successful, the booster was lost in a landing attempt onboard a drone ship.

By contrast, SpaceX has now chalked up numerous launches and successful booster returns with both their Falcon 9 and Falcon Heavy rockets, seemingly adding pressure on competitor Blue Origin to pick up a comparatively lethargic launch pace.

More NASA Cuts To Come

On the heels of the announcements by Boeing and Blue Origin, NASA is preparing for the results of an evaluation by the Department of Government Efficiency (DOGE), a federal oversight body led by Elon Musk, CEO of SpaceX. Acting NASA Administrator Janet Petro confirmed this development during a recent space industry conference in Washington, D.C., stating, “We are going to have DOGE come. They’re going to look—similarly to what they’ve done at other agencies—at our payments and what money has gone out.” Already deep in the Artemis Program, NASA has a lot on the line.

Established by President Donald Trump in January 2025, DOGE has been tasked with scrutinizing federal agencies to identify and eliminate excessive spending. The commission has already initiated reviews across various government bodies, including the Treasury Department, the Federal Aviation Administration (FAA), and the Federal Emergency Management Agency (FEMA). NASA is the latest agency to undergo this examination.

The DOGE review, which began on February 13th, has raised concerns due to Musk’s dual role as the head of DOGE and the CEO of SpaceX, a principal NASA contractor. SpaceX holds approximately $15 billion in contracts with NASA, primarily for transporting astronauts to and from the International Space Station and for lunar missions under the Artemis program. This significant financial relationship has led to questions about potential conflicts of interest.

Addressing these concerns, Petro emphasized NASA’s commitment to maintaining integrity during the review process. “We have very strict conflict of interest policies,” she noted, adding that the agency’s legal office would thoroughly vet any DOGE personnel involved in the evaluation to ensure impartiality.

The review comes at a time of significant transition within NASA. According to Petro, hundreds of NASA employees have already accepted buyout offers as part of DOGE’s initiatives to streamline operations and reduce expenditures. Petro acknowledged the challenges posed by these changes, stating, “All the officials in charge are trying to wrap our heads around all the executive orders as they’re flying at us.”

“We anticipate that they will start reviewing our contracts to find efficiencies,” NASA acting administrator Janet Petro wrote in a message sent to employees late Friday. Petro wrote in the memo, “NASA intends to comply with this and all executive orders.”

Even as NASA prepares for the outcome of the DOGE review, the agency is also anticipating a leadership change. Jared Isaacman, a billionaire astronaut who has flown multiple private missions with SpaceX, has been nominated to serve as the next NASA administrator. His appointment is pending Senate confirmation.

The upcoming DOGE report represents a critical juncture for NASA, as it balances the pursuit of ambitious space technology goals with the imperative of fiscal responsibility. The agency’s leadership has expressed a commitment to transparency and integrity throughout the review process, aiming to ensure that any identified efficiencies do not compromise NASA’s mission or its partnerships within the aerospace industry.

One of the changes expected to come as a result of DOGE’s NASA evaluation is the significant reduction of “cost plus” contracts with vendors such as Boeing. A cost-plus contract allows a vendor to begin work on a project for an agreed-upon fixed amount but to return for more money if unforeseen circumstances such as technological challenges and delays balloon the cost of completing the contract – which they almost always do. Cost plus contracts significantly contributed to Boeing’s nearly $6 billion over budget with the Space Launch System program. As DOGE begins to slash such contracts and replace them with “fixed cost contracts,” the trickle-down effect will negatively impact the workforce of contractors who have failed to realign their companies, as Blue Origin appears to be doing.

Members of the space community have expressed fear that the administration could ask for deep cuts to the $25 billion agency when the president submits his budget request to Congress.

As the situation develops, stakeholders within NASA and the broader industry will be closely monitoring the outcomes of the Department of Government Efficiency review and the potential implications for the agency’s future operations and strategic direction.