Newport News Shipbuilding Immediately Furloughs 471 Salaried Employees
In a surprise announcement that leaked out on Friday, May 30, Newport News Shipbuilding is furloughing about two percent of its workforce – 471 salaried employees – effective immediately. The shipyard which recently highlighted for the first time it would be simultaneously working on building two massive Ford-class aircraft carriers is citing the need for increased accountability and efficiency.
News of the furloughs is being widely reported by the media in the Hampton Roads area of Virginia which points out that Newport News is Virginia’s largest industrial employer. The reports said the company employs approximately 26,000 people and was conducting hiring efforts. Virginia Business reports the company added about 3,000 people in 2024 and had said it expected a similar increase this year.
The company confirmed the action in a statement sent to the Virginia media. “After careful review of our salaried workforce and business needs, we have furloughed 471 salaried shipbuilders across HII‘s Newport News Shipbuilding division,” the statement said. “This decision was not made lightly given its impact on affected team members. We take this step, however, to increase accountability and efficiency, and to improve overall performance in meeting our current and future commitments to the U.S. Navy.”
The shipbuilder is emphasizing changes in the industry and during the first quarter report, its parent company HII announced that Newport News’ revenues had decreased by 2.6 percent ($38 million) in the quarter. It cited lower volumes in aircraft carriers and naval nuclear support services, partially offset by higher volumes in the Columbia-class submarine program.
The company had recently reported securing new government contracts but the Trump administration while promising increases in military spending has been putting pressure on efficiency and cost-cutting. The Department of Defense has promised to increase efficiency while the newly created Department of Government Efficiency (DOGE) has a stated objective to modernize information technology, maximize productivity and efficiency, and cut wasteful spending.
Newport News in December christened the thirteenth Virginia-class submarine it has built for the U.S. Navy. That followed repositioning the under-construction carrier Enterprise in the dry dock to create a position to start work in 2025 on the next carrier, the Doris Miller. It also announced the acquisition of a South Carolina-based complex metal fabricator specializing in the manufacture of shipbuilding structures, modules, and assemblies to expand Newport News’ capacity.
The furloughs will impact engineers and other salaried positions at the shipbuilder and are currently expected to last up to five months. The company spokesperson is emphasizing that it is a temporary non-work, non-pay status, not terminating or reassigning any employees. However, they cannot work for contractors during this period. They were informed of the action the media reports said in an email on Friday and told it was effective as of Monday.
The spokesperson told the Virginia media that the company would continue to evaluate its staffing needs.