NASA has been hit by the US federal government’s sweeping workforce reductions, marking one of the most massive layoffs in the history of the space agency.

This week, nearly 1,000 probationary employees – recent hires or those recently transitioned into new roles – were terminated out of its 18,000 civil servants.

A NASA spokesperson confirmed that the directive to cut staff originated from the Office of Personnel Management.

“NASA is complying with the guidance and direction provided by OPM,” the spokesperson told US media. “It’s premature to discuss the impact on our agency at this time.”

Adding to the workforce shakeup, some 750 employees have also opted for the deferred resignation buyout scheme introduced under US President Donald Trump’s administration.

The programme, aimed at trimming federal employment numbers, offers financial incentives for voluntary departures. Given how NASA typically experiences a 6% annual workforce attrition, or about 1,000 employees each year, some of those accepting the buyout may have already planned to exit or retire, Ars Technica reported.

With the layoffs and voluntary departures combined, NASA’s workforce will shrink by nearly 10% from its early 2025 levels, representing the most dramatic downsizing since the post-Apollo era.

A collision course with the space economy

The decision to shed staff has ignited strong reactions, particularly from The Planetary Society, a nonprofit advocating space exploration. In a strongly worded statement, the group condemned the firings as “the largest involuntary workforce reduction since the end of the Apollo program”.

“These public servants – many of whom are just starting their careers – represent the future of NASA,” the organisation stated. “Their removal does not reflect their abilities or commitment to advancing U.S. interests in space, only that they chose to join the nation’s space agency within the past year.”

The advocacy group asked Trump to “reverse this arbitrary decision and work with Congress and other stakeholders to define a clear strategy for continued US leadership in space”.

Considering how the job cuts affect workers who are integral to the country’s space missions, the firings this week are believed to have a lasting impact on the space agency’s overall performance.

The broader economic implications of this downsizing cannot be ignored. According to NASA’s economic analysis for fiscal year 2023, the agency sustains some 300,000 jobs and contributes over US$75 billion to the US economy, Flying.com reported.

Data from the Bureau of Economic Analysis further supports the argument that federal investment in government programmes, such as NASA, has a higher multiplier effect on GDP growth than private sector spending.

“Any significant downturn in federal investments in NASA will have severe ramifications for the overall space economy and American capabilities in space exploration,” The Planetary Society warned.

More storm clouds on the horizon

The turbulence at NASA may not be over. A recent interim directive, published on the agency’s website, outlines a potential reduction in force across NASA’s headquarters, component facilities, and technical and service support centres.

While the directive does not specify the scale of further cuts, it signals that more workforce reductions could be imminent.

NASA’s predicament serves as a stark reminder of how workforce planning can be upended by shifting political priorities.

Managing talent in such an environment requires a strategic, long-term vision – one that considers immediate cost pressures along with the need to retain institutional knowledge and critical skills.

The space agency will continue to confront these questions long after the widescale layoffs are over. However, its ability to maintain its status as a global leader in space exploration may hinge on how effectively it manages these workforce challenges.