As the government shutdown enters its sixth day, the White House is signaling that mass layoffs of federal employees could begin soon if negotiations remain stalled. White House National Economic Council Director Kevin Hassett told CNN that President Trump and budget director Russell Vought are “lining things up and getting ready to act” if talks “go absolutely nowhere.” When pressed on timing, Trump said layoffs were already “taking place right now,” though he offered no details.
The shutdown, which began October 1, has paralyzed key federal operations. Senate leaders are set to vote again today on dueling funding bills, but neither is expected to pass. Reductions in force (RIFs) could make an already difficult situation worse for federal contractors. The Professional Services Council (PSC), which represents federal contracting firms, is warning that layoffs among federal employees may make it harder for contractors to get the direction they need to continue operations. Many contractors rely on their government contracting officers for guidance on issues like facility access, invoice processing, and stop-work orders — all of which can come to a halt if those officials are furloughed or let go.
While contractors are vital to mission success, they’re often caught in limbo during funding lapses — facing unpaid disruptions and limited communication. PSC warns that this shutdown could have longer-lasting financial impacts than those seen in the past, underscoring how fragile the contracting ecosystem becomes when government operations stall.
Layoffs: Federal Aviation Administration
The Federal Aviation Administration is preparing to furlough more than 11,000 employees—about a quarter of its workforce—with the government shutdown moving forward. While air traffic controllers and Transportation Security Administration officers would continue working to keep the skies and airports safe, they would do so without pay until the shutdown ends. The FAA said roughly 13,000 controllers would remain on duty, but the strain could slow flight operations and increase delays.
Airlines and travel industry groups are sounding alarms over the potential disruption. Meanwhile, the National Transportation Safety Board plans to furlough about a quarter of its workforce but maintain enough staff to investigate new air incidents. The agency’s experience during the 2019 shutdown—when 90% of its staff were sidelined and 22 investigations were delayed—served as a stark reminder of the real-world consequences of funding lapses on transportation safety and efficiency.
Hiring: Boeing
Boeing is ramping up its hiring efforts in St. Louis as it works to maintain production momentum during the ongoing machinists’ strike. The company announced an expansion of its recruiting push, adding job fairs and advertising campaigns to attract skilled workers to its defense operations. The first wave of new hires will begin training this week, focusing on munitions production and assembly — key areas that support Boeing’s national security contracts.
The move underscores Boeing’s commitment to keeping its defense programs on track and its workforce strong. By broadening its hiring efforts and investing in training, the company is signaling long-term confidence in its St. Louis operations and in the important role the region plays in Boeing’s mission to support U.S. defense readiness.
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Opportunity to Watch
Maxar Intelligence has officially rebranded as Vantor, marking a major shift from its roots in satellite imagery toward a broader mission as an end-to-end spatial intelligence company. The rebrand, announced on September 30, was paired with the launch of Tensorglobe, an AI-powered spatial intelligence platform that integrates data from satellites, drones, and ground systems to deliver a unified real-time view of the world.
Vantor’s new direction underscores how far the company has evolved in recent years—launching six next-generation imaging satellites, forging partnerships across the defense and commercial sectors, and now aiming to serve as the connective tissue for global autonomy and decision-making. Tensorglobe sits at the center of that vision, creating a living 3D model of Earth capable of fusing sensor data with 1-meter precision. Through this transformation, Vantor positions itself as a key player in the growing push for integrated, real-time intelligence systems that can support autonomous operations, battlefield awareness, and critical infrastructure monitoring alike.
