Sandia director says ‘our impact today is real’ as lab hits new spending record

Despite a wave of layoffs and funding uncertainties, Sandia National Laboratories said Friday it has set a new spending record for the 17th consecutive year. 

Sandia’s spending for fiscal year 2025 totaled $5.2 billion — nearly $41 million more than 2024. That number is nearly half of the state of New Mexico’s recurring annual budget, lab officials said.

“Our impact today is real, and it’s measurable,” said Director Laura McGill. “But our greatest contribution is what we’re building for the future, the talent, the opportunity and the innovation that will benefit New Mexico and the nation for years to come.”

The annual economic impact report, which covers October 2024 through September, follows massive cuts announced by Sandia last year. About 400 jobs were terminated, 100 of which were “limited-term employees” and another 300 who voluntarily separated. 

It also comes about eight months after McGill took the reins as Sandia’s director, replacing James Peery, who held the role for nearly five years. McGill, before taking over the top post, had served as Sandia’s deputy director for nuclear deterrence and chief technology officer. 

On Friday, McGill touted Sandia’s $144 million contribution in gross receipts taxes to the state, as well as its $1 billion in spending with hundreds of small businesses, its third consecutive year over that mark. 

“You can see, Sandia plays a meaningful role in the state’s overall economic health,” McGill said.

Sandia spent nearly $3 billion on internal labor costs for 2025, reflecting pay raises to achieve an average salary of $145,000 even as it reduced its Albuquerque campus workforce. Sandia said it had 16,320 employees in fiscal year 2025, of which 12,915 are in Albuquerque — a decrease from 16,915 the previous fiscal year.

Touching on the workforce reductions, McGill said “it made us stronger.” 

“By bringing our costs into alignment, it allows us to be able to be more efficient about the work we’re doing for the future,” McGill said.

Under President Donald Trump, the U.S. Department of Energy made significant cuts to energy projects across the nation last year, including about $135 million in New Mexico. But on the flip side, the agency has awarded thousands of dollars to nuclear science initiatives, according to recent DOE news releases. 

While McGill said she doesn’t want to speculate on any potential funding cuts or increases under a second Trump term, she’s confident in Sandia’s bipartisan support.

“We do expect some puts and takes, but generally, (what) the core of our business is — I have no doubt would be supported,” McGill said. “Some of the other programs, where we have some funding coming from other sources, there could be some ups and downs with those. But it’s pretty manageable for us.”

Hannah García covers tech and energy for the Journal. You can reach her at hgarcia@abqjournal.com.