The United States Postal Service (USPS) announced that it intends to cut 10,000 employees after signing an agreement with the Department of Government Efficiency (DOGE) to eliminate waste.
U.S. Postmaster General Louis DeJoy informed Congress in a letter that the Postal Service has a “broken business model that was not financially sustainable without critically necessary and core change.”
He announced a Voluntary Early Retirement program, which will reduce the USPS by 10,000 employees in the next 30 days. “Today we operate with 50 million fewer workhours annually than we did just 3 years ago, representing $2.5 billion in savings,” he wrote.
“Fixing a broken organization that had experienced close to $100 billion in losses and was projected to lose another $200 billion, without a bankruptcy proceeding, is a daunting task,” the letter stated. “Fixing a heavily legislated and overly regulated organization as massive, important, cherished, misunderstood and debated as the United States Postal Service, with such a broken business model, is even more difficult.”
Describing the USPS’s agreement with DOGE, LeRoy wrote, “This is an effort aligned with our efforts, as while we have accomplished a great deal, there is much more to be done. We are happy to have others to assist us in our worthwhile cause. The DOGE team was gracious enough to ask for the big problems they can help us with.”
DOGE and the General Services Administration (GSA) will address the “mismanagement of our self-funded retirement assets and the actuarial miscalculations of our retirement obligations” as well as look into the “mismanagement of our Workers’ Compensation Program.” DOGE will further review the unfunded mandates imposed on us by legislation” that compel the USPS to “perform costly activities without providing any supporting funding.”
