While Eastern Shipbuilding Group, CEO Joey D’Isernia, is dealing with what he described as “significant financial hardship caused by the structure and conditions of the program,” it announced the suspension of work on two US Coast Guard Offshore Patrol Cutters, citing unsustainable financial pressures and workforce reductions.
The decision constitutes another setback for the Coast Guard’s fleet modernization efforts and comes months after the Department of Homeland Security partially terminated Eastern Shipbuilding’s contract for two ships, halving the program.
In a statement, D’Isernia said, “Unfortunately, we also had to reduce our workforce. This was an extremely difficult step because our employees are the strength of this company.” “This action ensures we remain financially stable and focused on serving our government and commercial customers.”
