USPS Partners with DOGE to Cut 10,000 Jobs, Billions in Budget

The U.S. Postal Service (USPS) has embarked on a strategic partnership with an entity led by Elon Musk, known as the Department of Government Efficiency (DOGE). This collaboration is aimed at tackling the financial difficulties faced by the USPS and enhancing its operational efficiency. Postmaster General Louis DeJoy, who has been leading the USPS since 2020, has been actively pursuing reforms to reduce costs and improve the service's efficiency. The agreement with DOGE, which has been a key player in President Trump’s efforts to cut government spending and reduce workforces, is expected to bring about significant changes.

DeJoy has been on a mission to eliminate wasteful layers within the Postal Service’s structure and delivery network. This includes increasing prices and slowing service to achieve a more stable financial footing. The partnership with DOGE and the General Services Administration (GSA) is seen as a continuation of these efforts. The GSA has also played a crucial role in the Trump administration’s cost-cutting initiatives, focusing on downsizing the federal government’s physical footprint and implementing widespread layoffs.

The agreement, signed by DeJoy, outlines plans to cut 10,000 workers and billions of dollars from the USPS budget. This move is part of a broader strategy to address longstanding issues such as overpayments into the retirement fund, workers’ compensation obligations, and mandates issued by Congress without accompanying funding. DeJoy has highlighted these issues as requiring legislative fixes, a goal he and his predecessors have long sought.

The partnership has drawn criticism from lawmakers and stakeholders, who have expressed skepticism about the effectiveness of DeJoy’s reforms. Rep. Gerry Connolly, the top Democrat on the House Oversight and Government Reform Committee, criticized the new partnership, stating that it could lead to the privatization of the Postal Service and have catastrophic consequences for Americans, especially those in rural and hard-to-reach areas.

DeJoy has defended his legacy, noting the cost reductions and network changes he has implemented. He has also emphasized the need for fundamental changes in the way the Postal Service conducts its business to address its broken business model. The controversial plan to consolidate mail processing operations and move mail sorting away from individual post offices is part of his Delivering for America plan, which aims to take 10 years to implement.

Despite the challenges, the USPS did turn a profit in the first quarter of fiscal 2025, indicating that some of DeJoy’s reforms may be bearing fruit. However, the partnership with DOGE and the GSA is likely to face continued scrutiny and opposition from those who fear it could lead to the privatization of the Postal Service. The future of the USPS remains uncertain, but the collaboration with DOGE represents a significant step in its efforts to stabilize its finances and streamline its operations.