WASHINGTON — In a move set to significantly reshape the U.S. Postal Service (USPS), Postmaster General Louis DeJoy announced plans to reduce the workforce by 10,000 employees and cut billions from the budget. These measures are part of a broader strategy to address longstanding issues within the government-run entity, which has struggled financially in recent years. This initiative will be undertaken in collaboration with Elon Musk’s Department of Government Efficiency (DOGE), as detailed in a letter sent to Congress on Thursday.
The partnership aims to tackle several deep-seated challenges facing USPS, an agency with an annual revenue of $78 billion that has been working to maintain operations amid economic difficulties. The General Services Administration is also involved, bringing expertise to help identify further areas for efficiency improvements. Among the issues cited are the management of retirement assets and the Workers’ Compensation Program. The letter criticizes various regulatory constraints, labeling them as hindrances to regular business practices.
“While we have made considerable progress, much remains to be achieved,” DeJoy wrote, emphasizing the alignment of this program with ongoing efforts to revitalize USPS.
Despite the intended benefits, the proposal has its critics. Democratic Representative Gerald Connolly of Virginia expressed a strong opposition, warning that the influence of DOGE could lead to undermining and potential privatization of the service. “This surrender to privatization efforts will have severe consequences for Americans, particularly those in remote or rural areas who depend on USPS for mail, medication, ballots, and more,” he stated.
Currently, USPS employs approximately 640,000 workers, responsible for delivering across urban centers, rural landscapes, and remote islands. According to the letter, the reduction of 10,000 employees will occur over a month, facilitated by a voluntary early retirement program. Though the move was initially announced in January during the last days of the Biden administration, the number of potential job cuts was not made clear at the time.
Neither the USPS nor the Trump administration have provided comments in response to inquiries. This cost-reduction strategy is part of a broader goal to trim over $3.5 billion annually. This is not the first suggestive adjustment, as the USPS cut 30,000 positions in 2021. The agency, which has operated independently since 1970, is challenged by declining first-class mail use and privatization pressures from figures like Donald Trump. Last month, Trump suggested integrating USPS under the Commerce Department.
Brian L. Renfroe, President of the National Association of Letter Carriers, expressed cautious optimism regarding external assistance, provided it does not lead to privatization. “The Postal Service needs practical solutions, not efforts at privatization that threaten the jobs of 640,000 postal workers and the universal service every American trusts,” he affirmed.
DeJoy, appointed amid Trump’s first term in 2020 and previously a logistics business owner, has navigated various hurdles including the COVID-19 pandemic, increased mail-in election ballots, and attempts to improve financial stability through cost-cutting measures.
This news piece has been updated to clarify that the job cuts are part of a voluntary early retirement program announced in January, and not a consequence of the new partnership with the Department of Government Efficiency.