Over 5,500 NASA jobs at risk as voluntary layoff program launched ahead of 2026 budget cut

NASA is preparing for one of its largest workforce reductions in decades, following a proposed 24% cut to its budget under the Trump administration's fiscal 2026 plan. According to internal memos shared with employees on 9 June, the agency has rolled out a range of voluntary exit programmes including early retirement, deferred resignation, and voluntary separation incentives.

The proposed federal budget, though still under Congressional review, seeks to shrink NASA’s employee base from 17,391 to 11,853, a 32% reduction. While not yet finalised, the administration's intentions have led NASA to act pre-emptively — offering staff the option to leave early in exchange for financial and logistical incentives.

Employees have been asked to express their interest in these programmes by 25 July. Those choosing the Deferred Resignation Program will stop working shortly after applying, yet continue to receive pay until 9 January 2026 — a move designed to smoothen the transition for both staff and operations. Participants in early retirement or voluntary separation incentive schemes will typically begin administrative leave within one to two weeks of signing.

Although most departures are expected by early January, critical personnel may be retained until 1 April 2026, or in some cases, until 30 September 2026. The timeline is designed to minimise disruption in ongoing projects while complying with budgetary targets.

This workforce adjustment is part of a broader trend across federal agencies, where over 75,000 government employees have already agreed to deferred resignation offers. NASA’s initiative mirrors these national efforts to trim public sector staffing and reduce administrative expenditure.

Compounding the situation is a shift in workplace policy at NASA’s Jet Propulsion Laboratory (JPL), which recently ended its remote work model. The lab, which employs around 5,500 people, has required most staff to return on-site, prompting some to consider resigning rather than give up the flexibility of working from home. While not part of the formal budget cuts, this internal change is contributing to overall attrition within the agency.

The JPL policy change and the broader voluntary exit programmes together signal a significant transformation in how NASA is preparing to navigate a future of tighter budgets and shifting political priorities.

Controversy Over Diversity-Linked Dismissals

Adding to the mounting scrutiny is the dismissal of Rose Ferreira, a NASA employee of Caribbean origin, earlier this year. Her departure followed Donald Trump’s executive order mandating the removal of individuals employed under Diversity, Equity, and Inclusion (DEI) initiatives. The move stirred controversy, especially after Ferreira posted on Threads about the removal of her feature from NASA’s website — a post that quickly gained traction online.

While NASA has not commented publicly on her termination, the timing and policy context suggest it was in compliance with the executive order, drawing criticism from diversity advocates and former agency personnel. It’s unclear how many additional terminations, if any, have occurred as a direct result of this directive, but Ferreira’s case has spotlighted a politically sensitive aspect of the agency’s ongoing personnel changes.

Despite these sweeping measures, the ultimate fate of NASA’s workforce hinges on whether the proposed budget cuts are approved by Congress. Lawmakers have historically defended NASA’s funding, especially around science, space exploration, and national prestige, but the scale of this proposed cut has raised alarm bells across the scientific community.

For now, NASA appears to be hedging its bets, launching its workforce reduction strategy early to stay ahead of the potential fiscal shortfall. The agency's proactive stance also allows it to restructure internally with less disruption if the budget is passed as proposed.

What remains to be seen is how these changes will affect mission timelines, research initiatives, and public trust — especially as the world watches closely amid heightened global competition in space exploration and AI-driven research.