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U.S. Defense Secretary Pete Hegseth fired Navy Secretary John Phelan, effective immediately on Wednesday, with the Pentagon announcing the "departure" without explanation.
Axios reported that Phelan had been removed because he "didn't understand he wasn't the boss" and had bypassed the chain of command by going directly to U.S. President Donald Trump.
NBC News reported that the disagreements over shipbuilding, the Golden Fleet, and global ship deployment were the primary drivers.
Chief Pentagon Spokeperson Sean Parnell announced the departure on X: "Secretary of the Navy John C. Phelan is departing the administration, effective immediately. On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy. We wish him well in his future endeavors. Undersecretary Hung Cao will become Acting Secretary of the Navy."
No reason was given.
Navy Undersecretary Hung Cao, a 25-year Navy veteran who ran unsuccessfully for a Virginia Senate seat in 2024 with Trump's endorsement, will serve as acting secretary.
Three people familiar with the matter told NBC News that Phelan did not know he was being fired until he saw Parnell's X post.
A senior administration official disputed this claim, saying Hegseth had informed Phelan ahead of the announcement. The official added, "President Trump and Secretary Hegseth agreed that new leadership at the Navy is needed."
A person familiar with the situation told Axios, "Phelan didn't understand he wasn't the boss. His job is to follow orders given, not follow the orders he thinks should be given."
The same source said Phelan and Hegseth did not "get along."
Axios also reported that Hegseth felt Phelan had bypassed the chain of command by going directly to Trump, whose Mar-a-Lago Club in Palm Beach is near Phelan's mansion.
Despite the tensions with Hegseth, Pheland and Trump were said to have a good personal relationship and had texted about rust on warships.
NBC News reported that shipbuilding speed and approach were the main reasons for the firing, with Phelan clashing with Hegseth and Pentagon Deputy Stephen Feinberg over the Golden Fleet, global ship deployment, and shipbuilding policy.
Feinberg had already wrested some shipbuilding decision-making away from Phelan, according to two officials cited by NBC News.
Phelan had sat down with a dozen reporters just the day before, Tuesday, to discuss the future of the Navy, including the Golden Fleet and its battleship and frigate programs.
"We're going to really need to improve our ability to build ships," he said.
Phelan's ouster is the latest in a pattern of Hegseth-driven departures from military leadership.
Army Chief of Staff Gen. Randy George was removed roughly three weeks ago.
Generals David Hodne and William Green were also recently removed. Since entering the Pentagon, Hegseth has fired more than a dozen senior military officers, including the chief of naval operations and the Air Force's vice chief of staff.
One Pentagon insider drew a contrast between Phelan and Army Secretary Daniel Driscoll, who has escaped Hegseth's axe.
"The difference between Phelan and Driscoll is that Driscoll is kicking ass with the transformation initiative. And he's Vance's guy. Phelan is none of those things," the insider told Axios.
Hegseth himself remained in Trump's good graces. "Those are the four most important relationships he can have, Trump, Vance, Rubio and Caine, and they're good," said a senior administration official, adding, "But you never know around here."
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