NEWPORT NEWS, Va. (WAVY) — Newport News Shipbuilding has furloughed nearly 500 employees in an effort to “increase accountability and efficiency” the company said.

The news first shared by Newport News Shipbuilding President Kari Wilkinson in an email to employees Friday morning detailed that the furloughs would be impacting salaried workers across the division.

A spokesperson confirmed the exact number of positions effected is 471. That accounts for less than 2% of the company’s nearly 26,000-person workforce.

Newport News Shipbuilding, which is owned by Huntington Ingalls Industries, is the largest private employer in Hampton Roads and the largest industrial employer in Virginia.

“This decision was not made lightly given its impact on affected team members,” said Todd Corillo, an HII spokesperson for the Newport News Shipbuilding division. “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.”

While it isn’t known how long employees would be furloughed, the move comes on the heels of increased scrutiny for the shipyard.

In the fall, faulty welds were suspected to have been “knowingly made” on vessels built at the yard, prompting questions from Congress.

In HII’s most recent quarterly report to shareholders, it was stated that NNSB “continues to experience performance challenges in the construction of aircraft carriers and Virginia class (SSN 774) submarines. For the three months ended March 31, 2025, cumulative catch-up revenue adjustments included significant unfavorable performance adjustments on the Enterprise (CVN 80) and Doris Miller (CVN 81) construction contract and the Virginia class (SSN 774) submarine program.”

Revenues were down 3% compared to the previous quarter.

Newport News is the sole designer, builder and refueler of U.S. Navy nuclear-powered aircraft carriers and one of only two shipyards capable of designing and building nuclear-powered submarines.

Sen. Mark Warner, (D-Va.), who applauded President Donald Trump’s announcement to create an office of shipbuilding, said the industry needs continued attention in light of today’s announcement.

“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 said. “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.”