USPS Chief Louis DeJoy Seeks Successor Amid Growing Financial Crisis

WASHINGTON, D.C. — Louis DeJoy, who has led the United States Postal Service (USPS) since June 2020, has requested the USPS governing board to begin the search for his successor. His announcement comes as the agency grapples with significant financial challenges.

In a statement made in November, DeJoy emphasized the urgent need for cost-cutting measures, stating that without them, the USPS may face a future that could lead to either a “government bailout or the end of this great organization as we know it.” The postal service has reported losses exceeding $100 billion since 2007, prompting concerns about its long-term viability.

Despite the dire financial landscape, DeJoy did not disclose when he plans to resign from his post. His request to identify a successor marks a potential turning point for the agency, which has faced growing scrutiny over its operational decisions.

DeJoy and the USPS are actively implementing a plan announced in March 2021, which aims to erase an anticipated $160 billion in losses over the next decade. Recent projections, however, suggest the USPS could face $80 billion in losses during this period, leading to plans for further cuts.

The postal service has also been criticized by lawmakers regarding its ongoing consolidation efforts within its processing network. Despite this, DeJoy defended USPS’s strategy to expand its fleet of electric vehicles, which came after the agency received a $3 billion investment from Congress. This investment followed the successful delivery of tens of millions of ballots during the last presidential election.

First-class mail continues to decline, with a reported drop of 3.6% year-over-year, totaling 44.3 billion pieces. The trend has been alarming; the volume of first-class mail has decreased by 80% since 1997, reaching its lowest levels since 1968.

In a notable shift, USPS announced that there would be no increase in stamp prices in January 2024, marking the first such decision in two years. In July, the agency had raised the price of a first-class stamp from 68 cents to 73 cents, alongside a 7.8% increase in overall mailing services.

The evolving landscape of the postal service poses significant challenges for both DeJoy and his potential successor as they navigate the balance between maintaining essential services and addressing financial sustainability.