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Monday, Mar 17, 2025
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US Postal Service Collaborates with Government Efficiency Department to Enact Workforce Cuts in Response to Financial Difficulties
USPS intends to reduce its workforce by 10,000 positions through voluntary retirements as part of a cost-saving initiative in partnership with the Department of Government Efficiency.
The United States Postal Service (USPS) has revealed a partnership with the Department of Government Efficiency (DOGE) to tackle persistent financial difficulties.
Postmaster General Louis DeJoy notified Congress of a deal involving the General Services Administration and DOGE, headed by Elon Musk, with the goal of optimizing operations and cutting costs.
As part of this effort, USPS intends to shrink its workforce by 10,000 employees through a voluntary early retirement program set to launch next month.
This strategy aims to lower operating expenses and enhance efficiency.
USPS, an autonomous federal agency with around 635,000 staff members, reported a net loss of $9.5 billion in the previous fiscal year, a rise from the $6.5 billion loss of the year before.
The agency has been grappling with financial issues, amassing over $100 billion in losses since 2007, primarily due to decreasing mail volumes and increasing operational costs.
In response, USPS unveiled a 10-year restructuring plan in 2021, targeting the reduction of $160 billion in anticipated losses over the next decade.
Despite these initiatives, the agency now forecasts $80 billion in losses during the same timeframe, highlighting the necessity for ongoing cost-cutting actions.
The collaboration with DOGE aims to uncover additional efficiencies within USPS's operations.
DOGE has been engaged in reducing government expenditures through contract terminations and agency downsizing.
However, this partnership has sparked concerns among some legislators and labor advocates.
Representative Gerald Connolly expressed worry that involving DOGE could undermine USPS and lead to possible privatization, which could negatively impact services, particularly in rural communities.
The National Association of Letter Carriers also opposed privatization attempts, stressing the potential threat to postal workers’ jobs and the universal service relied upon by Americans.
The future of USPS is uncertain as it grapples with financial instability, workforce cuts, and ongoing discussions regarding potential restructuring or privatization.
The agency persists in executing its reform initiatives to attain financial sustainability while ensuring vital services across the nation.
Postmaster General Louis DeJoy notified Congress of a deal involving the General Services Administration and DOGE, headed by Elon Musk, with the goal of optimizing operations and cutting costs.
As part of this effort, USPS intends to shrink its workforce by 10,000 employees through a voluntary early retirement program set to launch next month.
This strategy aims to lower operating expenses and enhance efficiency.
USPS, an autonomous federal agency with around 635,000 staff members, reported a net loss of $9.5 billion in the previous fiscal year, a rise from the $6.5 billion loss of the year before.
The agency has been grappling with financial issues, amassing over $100 billion in losses since 2007, primarily due to decreasing mail volumes and increasing operational costs.
In response, USPS unveiled a 10-year restructuring plan in 2021, targeting the reduction of $160 billion in anticipated losses over the next decade.
Despite these initiatives, the agency now forecasts $80 billion in losses during the same timeframe, highlighting the necessity for ongoing cost-cutting actions.
The collaboration with DOGE aims to uncover additional efficiencies within USPS's operations.
DOGE has been engaged in reducing government expenditures through contract terminations and agency downsizing.
However, this partnership has sparked concerns among some legislators and labor advocates.
Representative Gerald Connolly expressed worry that involving DOGE could undermine USPS and lead to possible privatization, which could negatively impact services, particularly in rural communities.
The National Association of Letter Carriers also opposed privatization attempts, stressing the potential threat to postal workers’ jobs and the universal service relied upon by Americans.
The future of USPS is uncertain as it grapples with financial instability, workforce cuts, and ongoing discussions regarding potential restructuring or privatization.
The agency persists in executing its reform initiatives to attain financial sustainability while ensuring vital services across the nation.
