Acting Navy Secretary Hung Cao is wasting no time in the Big Chair. Just days after taking over for John Phelan, Cao fired Vice Admiral Karl Thomas, the Director of Naval Intelligence, and immediately killed the massive “Intelligence & Security” (I&S) reorganization that Phelan had spent months building.
The move has reportedly left the E-Ring in shock. Cao’s stated goal is a return to “lethality” over administrative bloat, making it clear that the era of institutional reshuffling is over in favor of immediate readiness as the Iran ceasefire remains fragile.
“Acting Navy Secretary Hung Cao fired Chief of Naval Intelligence Rob Townley this week and on April 24 issued a memorandum to nearly two dozen Navy organizations rescinding the organizational directives introduced by former Secretary John Phelan, including the directive establishing the Office of the Chief of Naval Intelligence and Security, according to DefenseScoop. The memo directed all affected units to revert to the structure predating Phelan’s reforms, effectively dissolving an eight-month reorganization effort. Senior defense officials quoted anonymously by DefenseScoop said the Navy’s I&S enterprise is currently without executive leadership over a multibillion-dollar budget and thousands of personnel, and that Office of the Chief of Naval Intelligence and Security (OCNI&S)’s operational status and Deputy Under Secretary of the Navy for Intelligence and Security (DUSN I&S)’s current structure remain unconfirmed by the Navy.”
Cao dissolved the new Intelligence & Security office created by Phelan
“Questions are swirling after the Navy’s new acting secretary, Hung Cao, initiated what some are calling “disruptive” changes in the sea service’s intelligence and security apparatus during his first week in charge.
The swift reforms and an unexpected personnel shift have sparked uncertainty about the path ahead for the Navy’s I&S enterprise, according to several sources who were granted anonymity to speak freely about the fluid situation.
They told DefenseScoop that Cao fired Chief of Naval Intelligence Rob Townley this week and canceled an ongoing reorganization effort that was launched months ago by former Navy Secretary John Phelan to elevate certain I&S functions to his direct purview, before his abrupt ouster.
“There is currently no oversight for a multibillion-dollar budget, or thousands of [U.S. intel and security] personnel globally, in the middle of a war,” a senior defense official said.
In response to questions on the alleged firing and concerns about the future of the nascent Office of the Chief of Naval Intelligence and Security (OCNI&S), a Department of Navy spokesperson told DefenseScoop: “Mr. Townley is no longer a Department of Navy employee. We appreciate his service and wish him well in his future endeavors.”
This marks one of Cao’s earliest adjustments to the Navy’s administration since he was promoted to acting secretary on April 22, after Phelan was suddenly let go by President Donald Trump and Defense Secretary Pete Hegseth.
“The moment Townley was fired, the entire naval intelligence enterprise lost its top executive,” a senior defense official said. They emphasized that it came “just days after the entire reorganization was not only stopped in its tracks, but essentially reversed back to the legacy organization of [the Deputy Undersecretary of the Navy for Intelligence and Security, or] DUSN I&S.””