USPS strikes deal with Elon Musk’s DOGE team for reform help

U.S. Postmaster General Louis DeJoy informed Congress about an agreement signed with Elon Musk’s DOGE government reform team to assist the struggling USPS in addressing significant challenges.

With 635,000 employees and a $9.5 billion loss last year, USPS has been excluded from DOGE-directed federal employee reductions.

DeJoy disclosed plans to reduce the workforce by 10,000 employees in the next month through a voluntary early retirement program, following a previous announcement in January. The agency has already cut 30,000 jobs since 2021.

The agreement with DOGE and the General Services Administration will help identify and achieve efficiencies within USPS, tackling issues like retirement asset management and regulatory burdens.

DeJoy has spearheaded a restructuring effort in the past five years, slashing projected losses from $160 billion to $80 billion over a decade by implementing strategies similar to those of the DOGE team.

Representative Gerald Connolly raised concerns about DOGE’s influence on USPS, fearing privatization and profit-driven motives. GSA and DOGE refrained from immediate comments.

While speculations of USPS merging with the U.S. Commerce Department surfaced, Musk advocated for privatizing the Postal Service. Commerce Secretary Howard Lutnick suggested USPS involvement in cost-saving measures like the U.S. census and Social Security tasks.

The Postal Service aims to save at least $36 billion over 10 years with new service standards, having incurred over $100 billion in losses since 2007, despite reporting a fourth-quarter profit of $144 million last month.

Amidst a drastic decline in first-class mail volume and evolving communication methods, USPS has witnessed its lowest mail volumes since 1968, prompting DeJoy’s decision to step down after five years.