In 1963, Department of Defense Secretary Robert S. McNamara started studying the feasibility of closing redundant military installations, especially naval ship yards, in order to save money.
 The Department of Defense announced in May 1964 that it was considering closing New York Naval Shipyard, as well as Fort Jay and the Brooklyn Army Terminal.
Workers protested against the yard's proposed closure in Washington, D.C., as well as in Madison Square Garden.
As a result of the shipyard's anticipated closure, new shipbuilding contracts were awarded to private shipbuilders rather than to the New York Naval Shipyard.
In October 1964, after lobbying from yard workers and local politicians, the shipyard received several shipbuilding contracts; at the time, the number of employees was 9,100 and decreasing.
However, the next month, McNamara announced that the New York Naval Shipyard would be one of nearly a hundred military installations that would be closed.

When the shipyard's closure was announced, it employed 10,600 civilian employees and 100 military personnel with an annual payroll of about $90 million.
The closure was anticipated to save about $18.1 million annually.
Many of the employees at New York Naval Shipyard were shipbuilders who were specially trained in that practice.
Shipbuilders made a last-minute attempt to convince the Navy not to close the yard.
Despite these attempts, in January 1965, officials announced that the yard's closure date was scheduled for June 30, 1966, and began laying off the remaining 9,500 workers.
By the middle of the year, the New York Naval Shipyard only had 7,000 workers on payroll.

After the New York Naval Shipyard's closure was announced, several alternate uses were proposed, none of which were implemented.
In early 1965, manufacturers started looking into the possibility of renting space at the yard.
Seymour Melman, an engineering economist at the Columbia University's Graduate School of Engineering, devised a detailed plan for converting the Brooklyn Navy Yard into a commercial shipyard which could have saved most of the skilled shipyard jobs.
The administration of Mayor Robert F. Wagner Jr. looked to the auto industry to build a car plant inside the yard.
Yet another plan called for a federal prison to be built on the site.

In August 1965, the Navy launched its last ship from the New York Naval Shipyard, the Austin-class amphibious transport dock Duluth.
The last Navy ships were commissioned at the yard in December 1965.
The formal closure of the New York Naval Shipyard was marked by a ceremony on June 25, 1966, and the Navy decommissioned the yard on June 30.
Many of the workers subsequently found other work at the Philadelphia Naval Shipyard or other locations.
In 1963, Department of Defense Secretary Robert S. McNamara started studying the feasibility of closing redundant military installations, especially naval ship yards, in order to save money.  The Department of Defense announced in May 1964 that it was considering closing New York Naval Shipyard, as well as Fort Jay and the Brooklyn Army Terminal. Workers protested against the yard's proposed closure in Washington, D.C., as well as in Madison Square Garden. As a result of the shipyard's anticipated closure, new shipbuilding contracts were awarded to private shipbuilders rather than to the New York Naval Shipyard. In October 1964, after lobbying from yard workers and local politicians, the shipyard received several shipbuilding contracts; at the time, the number of employees was 9,100 and decreasing. However, the next month, McNamara announced that the New York Naval Shipyard would be one of nearly a hundred military installations that would be closed.
When the shipyard's closure was announced, it employed 10,600 civilian employees and 100 military personnel with an annual payroll of about $90 million. The closure was anticipated to save about $18.1 million annually. Many of the employees at New York Naval Shipyard were shipbuilders who were specially trained in that practice. Shipbuilders made a last-minute attempt to convince the Navy not to close the yard. Despite these attempts, in January 1965, officials announced that the yard's closure date was scheduled for June 30, 1966, and began laying off the remaining 9,500 workers. By the middle of the year, the New York Naval Shipyard only had 7,000 workers on payroll.
After the New York Naval Shipyard's closure was announced, several alternate uses were proposed, none of which were implemented. In early 1965, manufacturers started looking into the possibility of renting space at the yard. Seymour Melman, an engineering economist at the Columbia University's Graduate School of Engineering, devised a detailed plan for converting the Brooklyn Navy Yard into a commercial shipyard which could have saved most of the skilled shipyard jobs. The administration of Mayor Robert F. Wagner Jr. looked to the auto industry to build a car plant inside the yard. Yet another plan called for a federal prison to be built on the site.
In August 1965, the Navy launched its last ship from the New York Naval Shipyard, the Austin-class amphibious transport dock Duluth. The last Navy ships were commissioned at the yard in December 1965. The formal closure of the New York Naval Shipyard was marked by a ceremony on June 25, 1966, and the Navy decommissioned the yard on June 30. Many of the workers subsequently found other work at the Philadelphia Naval Shipyard or other locations.
Brooklyn Navy Yard