The U.S. Postal Service (USPS) has signed a new partnership deal with Elon Musk’s Department of Government Efficiency (DOGE) to address its financial troubles.
In a letter to Congress on Thursday, Postmaster General Louis DeJoy revealed that the USPS will work with DOGE to help fix “big problems” and reduce costs. As part of the plan, the agency will cut 10,000 jobs over the next month through a voluntary early retirement program. DeJoy explained that the move is necessary to reduce the agency’s operating expenses, CNBC reported.
The USPS, which employs 635,000 people, has faced financial struggles, losing $9.5 billion last year.
DeJoy emphasized that the partnership with DOGE and the General Services Administration will help USPS find ways to become more efficient and save money. He also pointed to issues such as poor management of retirement assets and workers’ compensation programs by other agencies, along with burdensome regulations that affect USPS.
“This is an effort aligned with our efforts, as while we have accomplished a great deal, there is much more to be done,” DeJoy was quoted as saying by Associated Press.
However, the plan has raised concerns, especially among Democrats. Representative Gerald Connolly of Virginia warned that working with DOGE could lead to the privatization of USPS.
“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,” Connolly stated.
Last week, Musk suggested that privatizing the Postal Service might be a good idea. Meanwhile, President Donald Trump had proposed merging the USPS with the U.S. Commerce Department, a move that Democrats say would go against federal law.
While, National Association of Letter Carriers President Brian L. Renfroe welcomed support in addressing the agency’s biggest problems, he opposed any move to privatize the Postal Service.
“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,” Renfroe said.
USPS Struggles Amid Declining Mail Volume
DeJoy has been working on restructuring the USPS for the past five years. His efforts have included shrinking the workforce and renegotiating contracts to reduce costs. In fact, the latest move follows similar steps taken in the past, such as cutting 30,000 jobs in 2021.
USPS has also planned to save $36 billion over the next decade by adopting new service standards.
The Postal Service, which works as an independent entity, has faced significant challenges as the rise of digital communication has led to an 80% decline in first-class mail since 1997. The agency reported its lowest mail volume since 1968.
Since 2007, the agency has lost over $100 billion, including the $9.5 billion lost last year. However, the agency reported a $144 million profit in the last quarter.
DeJoy, a Republican appointed by Trump during his first term, has announced plans to leave after about five years in charge. His tenure has been marked by challenges such as the COVID-19 pandemic and a surge in mail-in ballots during elections.
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