Postmaster General Louis DeJoy plans to cut 10,000 jobs and slash billions from the U.S. Postal Service budget, working in coordination with Elon Musk’s Department of Government Efficiency, according to a letter sent to Congress on Thursday.
DOGE will assist the USPS in tackling “big problems” at the $78 billion-a-year agency, which has struggled financially in recent years. The agreement also includes the General Services Administration (GSA) to help identify and implement “further efficiencies.”
Why It Matters
The USPS, which employs approximately 640,000 workers, posted a $9.5 billion loss in the fiscal year ending September 2024. This latest effort is part of a broader attempt to curb costs as the agency grapples with calls for privatization and potential restructuring under President Donald Trump’s administration.
What To Know
The letter cites the mismanagement of retirement assets, problems within the Workers’ Compensation Program, and regulatory constraints that the USPS claims “restrict normal business practices.”
The planned staff reductions will occur through a voluntary early retirement program, first announced in January, which has now expanded to specify the number of employees expected to leave.
In the letter, DeJoy highlighted issues including retirement asset mismanagement, inefficiencies within the Workers’ Compensation Program, and restrictive regulations. He argues that these regulations prevent the USPS from operating like a typical business.
“This initiative aligns with our broader efforts,” DeJoy wrote. “While we have accomplished a great deal, there is much more to be done.”
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For years, the USPS has faced significant financial pressure, partly due to long-standing regulations such as the mandatory six-day mail delivery schedule, which critics say limit profitability. DeJoy called on lawmakers to review these restrictions, emphasizing that they prevent the agency from making necessary operational changes.
The letter has reignited concerns about the Postal Service’s future, especially regarding its independence. These developments occur amid Trump’s consideration to move the USPS under the jurisdiction of the Commerce Department, a change that would place it directly under executive branch control.
Democrats have consistently opposed efforts they view as interference with USPS operations, warning that such moves risk privatization and could jeopardize essential services, particularly for rural communities.
Labor unions have also voiced their concerns. National Association of Letter Carriers President Brian L. Renfroe cautioned that the USPS requires practical, sensible solutions rather than privatization efforts that could endanger the jobs of 640,000 postal workers.
What People Are Saying
President Donald Trump, regarding bringing the USPS into the Department of Commerce: “We want to have a post office that works well and doesn’t lose massive amounts of money. And we’re thinking about doing that.”
Democratic Representative Gerald Connolly, in a statement: “This capitulation will have catastrophic consequences for all Americans — especially those in rural and hard to reach areas — who rely on the Postal Service every day to deliver mail, medications, ballots, and more.”
DOGE head Elon Musk, during a virtual appearance at the Morgan Stanley Technology, Media, and Telecom Conference: “I think logically we should privatize anything that can reasonably be privatized. I think we should privatize the Post Office and Amtrak, for example…We should privatize everything we possibly can.”
The National Association of Letter Carriers President Brian L. Renfroe, in a statement: “Common sense solutions are what the Postal Service needs, not privatization efforts that will threaten 640,000 postal employees’ jobs, 7.9 million jobs tied to our work, and the universal service every American relies on daily.”
What Happens Next
DeJoy’s letter did not provide a specific timeline for when DOGE’s involvement will affect the USPS’s daily operations. However, it confirmed that 10,000 job cuts would be implemented within 30 days, making it one of the largest workforce reductions in recent USPS history.
This story includes reporting from the Associated Press.
Update 3/14/25, 5:17 p.m. ET: This article was updated with additional information.
