Newport News Shipbuilding Immediately Furloughs 471 Salaried Employees

In a surprising turn of events, Newport News Shipbuilding has announced the immediate furlough of 471 salaried employees, representing about two percent of its workforce. This decision comes as the shipyard, Virginia’s largest industrial employer, aims to enhance accountability and efficiency while managing its operations. The company, which recently began constructing two Ford-class aircraft carriers, confirmed the furloughs in a statement released to local media.

Details of the Furloughs and Company Response

The furloughs, which affect engineers and other salaried positions, are expected to last up to five months. Newport News Shipbuilding, part of HII, stated that this action was taken after a thorough review of its workforce and business needs. “This decision was not made lightly given its impact on affected team members,” the company said. “However, we take this step to increase accountability and efficiency, and to improve overall performance in meeting our current and future commitments to the U.S. Navy.”

Despite the furloughs, Newport News Shipbuilding has been actively hiring. The company added approximately 3,000 employees in 2024 and anticipated similar growth for the current year. However, recent reports indicate a 2.6 percent decline in revenues during the first quarter, attributed to lower volumes in aircraft carriers and naval nuclear support services. This decline was partially offset by increased activity in the Columbia-class submarine program.

The company has also secured new government contracts, but it faces pressure from the Department of Defense to enhance efficiency and reduce costs. The newly established Department of Government Efficiency (DOGE) aims to modernize operations and eliminate wasteful spending, further influencing the shipyard’s decision to implement furloughs.

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Future Outlook and Industry Changes

Newport News Shipbuilding has been adapting to changes in the defense industry. In December, the shipyard christened its thirteenth Virginia-class submarine for the U.S. Navy and repositioned the under-construction carrier Enterprise to prepare for the upcoming Doris Miller carrier project, set to begin in 2025. Additionally, the company has expanded its capabilities by acquiring a South Carolina-based metal fabricator specializing in shipbuilding structures.

While the furloughed employees are currently in a temporary non-work, non-pay status, they are prohibited from working for contractors during this period. The company has communicated the furlough details via email, effective immediately. A spokesperson for Newport News Shipbuilding emphasized that the company will continue to assess its staffing needs as it navigates these changes in the industry.