In an attempt to “increase accountability and efficiency,” Newport News Shipbuilding has placed around 500 workers on furlough, according to the corporation.
Kari Wilkinson, the president of Newport News Shipbuilding, initially informed staff members via email on Friday morning that the furloughs would affect salaried workers throughout the division.
According to a spokeswoman, 471 occupations are specifically affected. Less than 2% of the company’s almost 26,000 employees are represented by that.
The biggest industrial employer in Virginia and the largest private employer in Hampton Roads is Newport News Shipbuilding, which is operated by Huntington Ingalls Industries.
“This decision was not made lightly given its impact on affected team members,” Todd Corillo, an HII spokesperson for the Newport News Shipbuilding division stated. “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 length of the employees’ leave is unknown, but the action follows heightened monitoring of the shipyard.
Congress began to inquire in the fall about possible “knowingly made” defective welds on boats constructed at the yard.
NNSB “continues to experience performance challenges in the construction of aircraft carriers and Virginia class (SSN 774) submarines,” according to HII’s most recent quarterly report to shareholders. Significant negative performance adjustments on the Virginia class (SSN 774) submarine program and the Enterprise (CVN 80) and Doris Miller (CVN 81) construction contracts were included in the cumulative catch-up revenue adjustments for the three months ending March 31, 2025.
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In comparison to the prior quarter, revenues decreased by 3%.
Newport News is one of just two shipyards in the United States that can design and construct nuclear-powered submarines, and it is the only company that can design, build, and refuel nuclear-powered aircraft carriers for the Navy.
In light of today’s statement, Sen. Mark Warner (D-Va.), who praised President Donald Trump’s proposal to establish an office of shipbuilding, stated that the industry need ongoing support.
“The shipyard is critical to our national defense and what we’ve got to recognize is we’ve got to make sure we can find a way to raise the wages, particularly the folks who are working in the yard,” Warner stated. “Building these ships, you know, if it’s cheaper to work or easier to work in a fast food restaurant. And the really hard work, is to construct our naval ships.”
