USPS to Cut 10,000 Jobs Amidst Financial Crisis and Controversy

WASHINGTON — Postmaster General Louis DeJoy announced Thursday a plan to reduce the U.S. Postal Service‘s workforce by 10,000 employees while striving to improve the agency’s financial stability with the help of Elon Musk‘s Department of Government Efficiency (DOGE).

The decision, outlined in a letter sent to Congress, signals a significant restructuring at the $78 billion-a-year Postal Service, which has faced ongoing financial challenges and previous job cuts.

According to DeJoy, the Postal Service is expected to implement these job reductions through a voluntary early retirement program within the next 30 days. He emphasized the necessity for reform, stating the agency has suffered close to $100 billion in losses and is projected to lose another $200 billion if standard operations continue.

“Fixing a broken organization that had experienced these losses without a bankruptcy proceeding is a daunting task,” DeJoy stated in the letter.

DeJoy’s collaboration with the General Services Administration (GSA) aims to identify ways for the Postal Service to enhance efficiencies, addressing issues like the mismanagement of retirement assets and a challenging regulatory landscape that hinders its operations.

However, critics, including Democratic U.S. Rep. Gerald Connolly of Virginia, expressed concern over the implications of this agreement. Connolly argues that outsourcing the Postal Service’s operations to DOGE could lead to privatization and the erosion of essential services that many Americans, particularly in rural areas, rely on.

“This capitulation will have catastrophic consequences for all Americans — especially those in rural and hard-to-reach areas,” Connolly said in a statement. “Reliable mail delivery can’t just be reserved for the privileged few.”

The Postal Service currently employs around 640,000 workers who manage deliveries across urban, rural, and remote island communities. The recent announcement follows a prior cut of 30,000 jobs in 2021, indicating a persistent trend towards workforce reductions.

In his letter, DeJoy also referenced issues that impact the agency’s financial success, including burdensome federal mandates and regulatory constraints described as “restricting normal business practice.” He maintained, however, that some successes have been achieved and further changes are necessary.

National Association of Letter Carriers President Brian L. Renfroe responded to the developments, stating that while the union is open to assistance in tackling the agency’s challenges, they firmly oppose any efforts toward privatization.

“Common-sense solutions are what the Postal Service needs, not privatization efforts that threaten 640,000 postal employees’ jobs and the universal service every American relies on daily,” Renfroe asserted.

The agency’s budgetary cuts and financial struggles have drawn attention from various political perspectives, including remarks from former President Trump, who has suggested increasing governmental control over the Postal Service.

As the Postal Service moves forward with these workforce reductions and partnerships focused on efficiency, ongoing discussions about its future structure and funding will be crucial.