USPS Announces Workforce Reductions and Budget Cuts
By The Associated Press
Postmaster General’s New Strategy
Postmaster General Louis DeJoy is set to implement significant changes within the United States Postal Service (USPS), proposing the reduction of 10,000 jobs and billions of dollars in budget cuts. The initiative will be supported by the Department of Government Efficiency, led by entrepreneur Elon Musk, as stated in a letter addressed to Congress.
Collaborative Efforts for Efficiency
The USPS, which operates on an annual budget of approximately $78 billion, has faced ongoing financial difficulties and challenges in maintaining its operations. The collaboration with the Department of Government Efficiency aims to address key issues, including the mismanagement of retirement assets and the Workers’ Compensation Program. The partnership will also involve the General Services Administration to enhance operational efficiencies.
Concerns from Congressional Representatives
Critics have expressed reservations regarding this new collaboration. Representative Gerald Connolly of Virginia voiced concerns that the involvement of DOGE could lead to detrimental privatization of the Postal Service, especially impacting communities that rely heavily on postal services, such as those in rural areas. He remarked, “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.”
Workforce Reduction Details
As part of its financial restructuring, the USPS plans to initiate a voluntary early retirement program in the next 30 days, targeting the departure of 10,000 employees. This plan builds on prior announcements made in January, although the specific number of job cuts was not detailed until now. Currently, the USPS employs around 640,000 workers delivering mail across urban and rural settings alike.
History of Staffing Cuts
This is not the first instance of workforce cuts at the USPS; in 2021, the agency reduced its workforce by 30,000 employees. In an effort to counteract financial losses, the USPS has previously aimed to cut operating costs by over $3.5 billion annually.
Opposition to Privatization
Brian L. Renfroe, President of the National Association of Letter Carriers, stated that while assistance in addressing USPS’s operational challenges is welcome, there is strong opposition to any potential privatization. He emphasized, “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.”
The Future of USPS
Since its establishment as an independent entity in 1970, the USPS has continuously sought to navigate challenges posed by decreasing first-class mail volumes, particularly amid the COVID-19 pandemic and increasing mail-in voting. DeJoy, appointed in 2020, has faced pressure from various quarters to privatize the service and balance the agency’s financial necessities amid declining revenues.
