Postmaster General Proposes Cuts to USPS Workforce and Budget
In a significant move, Postmaster General Louis DeJoy is planning to reduce the U.S. Postal Service (USPS) workforce by 10,000 employees. This decision aims to save billions from the postal service’s budget as it grapples with financial challenges, a letter to Congress revealed on Thursday.
DeJoy’s initiative will involve collaboration with Elon Musk’s Department of Government Efficiency (DOGE) to tackle key issues within the agency that currently operates on an annual budget of $78 billion. This step is seen as necessary as USPS has been struggling in recent years to maintain its financial health. The collaboration also includes the General Services Administration, which is expected to help identify further efficiencies throughout the organization.
According to the USPS, several contributing factors have led to its financial difficulties. These include the mismanagement of retirement funds and Workers’ Compensation, along with regulatory constraints that hinder typical business practices. DeJoy expressed optimism, stating, “While we have accomplished a great deal, there is much more to be done.”
However, not everyone is on board with these changes. Critics, including Democratic U.S. Representative Gerald Connolly from Virginia, have expressed alarm about the potential ramifications of such cuts. Connolly cautioned that transferring more authority to DOGE risks undermining the Postal Service and could lead to its privatization.
“There could be disastrous consequences for all Americans, especially those in rural and hard-to-reach areas who depend on the Postal Service for mail, medical supplies, ballots, and much more,” he declared.
Currently, USPS employs nearly 640,000 workers responsible for delivering mail across the nation, from urban centers to rural communities. Under the new plan, the organization will start reducing its workforce through a voluntary early retirement program, with an expected reduction of 10,000 positions over the next month.
This marks a continuation of previous cost-cutting measures, which include a plan to reduce operating expenses by over $3.5 billion annually. In 2021, the Postal Service already laid off about 30,000 employees.
Since the USPS has functioned as an independent entity since 1970, it has faced increasing pressure to adjust to the modern demands of mail delivery, especially as first-class mail usage declines. This has led to ongoing discussions about privatization, a sentiment echoed by former President Donald Trump, who recently suggested that USPS could fall under the Commerce Department’s control.
The National Association of Letter Carriers expressed a desire for practical solutions rather than privatization, emphasizing the importance of preserving jobs not just for postal workers but for the millions linked to their work, underscoring the need for universal services that all Americans depend on.
DeJoy, who has a background as a logistics business owner, was appointed during the Trump administration in 2020. Throughout his tenure, he has faced numerous challenges, including the COVID-19 pandemic’s impact on operations, increased demand for mail-in ballots during elections, and ongoing efforts to curb financial losses.
