Postmaster General Louis DeJoy plans to cut 10,000 jobs and reduce costs by billions at the U.S. Postal Service (USPS), with assistance from Elon Musk’s Department of Government Efficiency (DOGE). The USPS is addressing issues including mismanagement of retirement assets and regulatory constraints. Critics, such as Rep. Gerald Connolly, warn that these cuts could harm service, especially in rural areas. The USPS, currently employing about 640,000 workers, previously announced a cost-saving initiative. The agency has faced challenges balancing finances amid a decline in first-class mail. DeJoy, appointed during Trump’s administration, opposes privatization efforts.
WASHINGTON (AP) — Postmaster General Louis DeJoy intends to reduce the workforce by 10,000 employees and cut billions from the U.S. Postal Service budget, collaborating with Elon Musk ’s Department of Government Efficiency, as outlined in a letter to Congress members on Thursday.
DOGE will aid USPS in tackling “significant challenges” within the $78 billion-per-year agency, which has faced difficulties in recent years to maintain its financial stability. The partnership will also involve the General Services Administration to assist in identifying and achieving additional efficiencies for the Postal Service.
USPS highlighted issues such as poor management of its retirement funds and Workers’ Compensation Program, alongside various regulatory challenges described in the letter as “hindering standard business operations.”
“This initiative aligns with our ongoing efforts, as while we have made significant progress, there remains much to accomplish,” DeJoy stated.
Opponents of the deal express concerns that the repercussions of these cuts will resonate throughout the nation. Democratic U.S. Representative Gerald Connolly of Virginia, who received the letter, warned that delegating the Postal Service to DOGE could lead to its weakening and privatization.
“This surrender will have devastating effects for all Americans — particularly those in rural and remote regions — who depend on the Postal Service daily for mail, medications, ballots, and more,” he remarked in a statement.
Currently, USPS employs around 640,000 workers responsible for deliveries ranging from urban areas to rural locales and even distant islands.
The Postal Service aims to reduce its workforce by 10,000 employees within the next 30 days via a voluntary early retirement program, as detailed in the letter. The USPS initially unveiled this plan during the final days of the Biden administration in January, but did not specify the number of expected departures at that time.
Both the USPS and the Trump administration did not immediately respond to inquiries from The Associated Press for comments.
The agency had previously declared intentions to slash its operating expenses by over $3.5 billion annually. This marks not the first time thousands have been laid off, as in 2021, the agency cut 30,000 positions.
As an independent entity since 1970, USPS has encountered challenges in maintaining finances amid declining first-class mail volume and has resisted calls for privatization from figures like President Donald Trump. Last month, Trump suggested putting USPS under the purview of the Commerce Department, potentially leading to an executive branch takeover.
Brian L. Renfroe, President of the National Association of Letter Carriers, responded to Thursday’s letter affirming their openness to any assistance with addressing the agency’s major challenges while firmly opposing any privatization efforts.
“The Postal Service requires practical solutions, not privatization attempts that put the jobs of 640,000 postal employees, 7.9 million jobs connected to our functions, and the universal services relied upon by every American at risk,” he stated.
DeJoy, a Republican donor with a background in logistics, was appointed to lead USPS during Trump’s first term in 2020. Throughout his tenure, he has faced ongoing challenges, including the COVID-19 pandemic, surges in mail-in election ballots, and efforts to curb losses via cost-cutting and service reductions.
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This story has been revised to clarify that the voluntary early retirement program used for job cuts was announced in January and is not a consequence of the agreement with the Department of Government Efficiency.