Public shipyard employees exempt from federal layoffs as workforce cuts hit the Navy

Federal civilian employees working in shipyard maintenance facilities and depots are exempt from the Trump administration's sweeping federal layoffs, a defense official told Inside Defense today.

Layoffs have begun in other unspecified areas of the Navy’s civilian workforce, the official confirmed. However, shipyard employees working at government facilities including the United States’ four public shipyards are safe from the cuts.

Testifying before Congress today, Adm. James Kilby, the vice chief of naval operations who is currently performing the duties of CNO after Adm. Lisa Franchetti was abruptly fired last month, said public shipyard workers and civilian mariners at Military Sealift Command are also exempt from an otherwise service-wide hiring freeze.

“We are trying to shape this in a manner that allows us to continue the most important work as we work through guidance from the administration,” Kilby told Sen. Mazie Hirono (D-HI) today during a hearing on Defense Department readiness.

In late February, the Pentagon announced plans to cut its civilian workforce by between 5% and 8% -- 35,000 to 56,000 jobs -- starting with the termination of about 5,400 probationary workers.

Lawmakers have previously raised concerns over the impact of these layoffs on ship maintenance, with Sens. Jeanne Shaheen (D-NH) and Susan Collins (R-ME) directly calling on the Navy and Office of Personnel Management to exempt public shipyards from the cuts.

Today, Kilby said ship availability rates sit at about 67% with the Navy still working toward the 80% combat-surge readiness goal established by Franchetti.

The Navy estimates the maritime industrial base -- including both private industry and public maintenance facilities -- will need to hire 25,000 workers each year over the next decade to catch up with ship construction and maintenance demand.