WASHINGTON — In a bid to revamp the United States Postal Service (USPS) and cut costs, Postmaster General Louis DeJoy has announced plans to downsize the workforce by 10,000 employees and trim billions of dollars from the budget. This effort will be made in collaboration with Elon Musk’s Department of Government Efficiency (DOGE), DeJoy outlined in a letter to Congress.
The collaboration with DOGE aims to tackle significant issues facing the $78 billion agency, which has been battling financial challenges in recent years. As part of the initiative, the General Services Administration will join forces to identify additional efficiency improvements for USPS operations.
Major concerns highlighted by USPS include the mismanagement of retirement assets, flaws in the Workers’ Compensation Program, and stringent regulatory constraints described as barriers to normal business practices. “This initiative aligns with our ongoing efforts to enhance efficiency, though our mission is far from complete,” wrote DeJoy in his correspondence.
However, critics of the initiative express concerns about adverse impacts from the proposed cuts. Democratic U.S. Representative Gerald Connolly from Virginia, a recipient of the letter, argues that the Postal Service could face destabilization and creeping privatization under DOGE’s oversight. “Such capitulation poses dire risks to Americans nationwide, particularly those in rural or remote areas relying on consistent postal service for essential deliveries,” he stated.
Currently, USPS employs approximately 640,000 workers, facilitating deliveries ranging from metropolitan centers to isolated rural communities and islands. The plan to reduce workforce numbers includes offering a voluntary early retirement program to 10,000 employees within a month, as specified in the letter.
The USPS and current administration did not immediately provide comments regarding inquiries about these developments. Historically, the USPS declared intentions to reduce operating expenses by $3.5 billion annually, and similarly, a staff reduction of 30,000 employees took place in 2021.
Since 1970, USPS has functioned independently, grappling with financial strains as first-class mail volume declines. Amid ongoing debates about potential privatization, it resists such pressure advocated by President Donald Trump and others. Recently, Trump proposed transferring USPS control to the Commerce Department, hinting at an executive branch intervention.
Brian L. Renfroe, President of the National Association of Letter Carriers, responded to the announcement, emphasizing support for addressing genuine agency challenges while maintaining staunch opposition to any privatization steps. “USPS needs practical solutions instead of efforts that jeopardize 640,000 postal workers’ livelihoods, 7.9 million indirectly connected jobs, and the indispensable universal service relied upon by all Americans,” he declared.
Appointed in 2020 during Trump’s presidency, DeJoy has navigated multiple challenges, including the COVID-19 crisis, increased mail-in voting, and financial pressures necessitating cost reductions and service reevaluations. As a Republican donor and former logistics entrepreneur, DeJoy persists in balancing agency reform efforts against external and internal pressures.
