STORY: United States Navy Secretary John Phelan has been fired.

That's according to an official and a person familiar with the matter on Wednesday (April 22).

The move marks another wartime shakeup at the Pentagon coming just weeks after Defense Secretary Pete Hegseth ousted the Army's top general.

The Pentagon confirmed his departure saying Phelan left the administration "effective immediately." Though it did not give a reason or say whether he chose to step down.

His firing was first reported by Reuters.

Sources said Phelan was dismissed in part for moving too slowly on reforms to speed up shipbuilding.

The Navy is under intense pressure to expand its fleet.

China's shipbuilding industry now dwarfs the U.S., which was once a global powerhouse.

One source cited strained relationships with Hegseth, his deputy Steve Feinberg, and the Navy's second-ranking civilian, Hung Cao.

The Pentagon said Cao will now serve as acting Navy secretary.

The source also cited an ethics investigation into Phelan's office.

A billionaire with close ties to President Donald Trump, Phelan is the first Trump-appointed service secretary fired since Trump returned to office last year.