
Navy Secretary John Phelan has been fired, a U.S. official and a person familiar with the matter told Reuters, in another Pentagon reshuffle that comes just weeks after Defense Secretary Pete Hegseth fired the Army's top general.
The Pentagon announced his departure in a brief statement, saying he was leaving the administration “effective immediately.” But it did not give a reason or say whether it was his decision to leave.
The sources, who spoke on condition of anonymity, said Phelan was fired because he was moving too slowly to implement reforms to speed up shipbuilding and because he had disagreements with key Pentagon leadership.
One source cited bad relationships with Hegseth, Hegseth's deputy, Steve Feinberg, as well as the Navy's No. 2 civilian, Hung Cao, who according to the Pentagon will now take over as acting secretary of the Navy.
According to sources, another factor that influenced the decision was an ethics investigation into Phelan's office.
A billionaire seen as a close confidant of President Donald Trump, Phelan is the first elected service secretary in the administration to be fired since Trump returned to office last year.
He was considered a billionaire businessman with close ties to President Donald Trump and is the first official of this level to be dismissed since Trump returned to power.
His dismissal comes amid a period of turmoil at all levels of leadership in the Pentagon, with several senior figures leaving, including former Joint Chiefs of Staff General CQ Brown and other military leaders. Senator Jack Reed called the decision “disturbing,” linking it to instability at the Defense Department.
The departure also comes at a time of tension with Iran, as the US is increasing its naval presence in the Middle East and aims to expand its fleet in the face of growing competition from China.