USPS to Cut 10,000 Jobs as DeJoy Partners with Musk’s DOGE

USPS to Cut 10,000 Jobs as DeJoy Partners with Musk’s DOGE \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Postmaster General Louis DeJoy plans to cut 10,000 USPS jobs and billions from the agency’s budget, working alongside Elon Musk’s Department of Government Efficiency (DOGE). The initiative aims to address financial inefficiencies but has sparked concerns about privatization and service disruptions. Critics argue the cuts could negatively impact rural communities and threaten mail service reliability.

USPS Job Cuts & Budget Reductions – Quick Looks

• Postmaster General Louis DeJoy to cut 10,000 USPS jobs and billions from its budget.
• Elon Musk’s Department of Government Efficiency (DOGE) to assist in restructuring.
• USPS cites mismanagement of retirement assets and regulatory challenges as key issues.
• The General Services Administration will help find additional operational efficiencies.
• Critics warn of service disruptions, especially for rural communities.
• USPS workforce currently stands at 640,000 employees serving urban and remote areas.
• Job cuts will occur through a voluntary early retirement program within 30 days.
• The plan was initially introduced during the Biden administration in January.
• USPS aims to cut operating costs by $3.5 billion annually.
• The agency has long faced calls for privatization, including from Donald Trump.
• National Association of Letter Carriers opposes privatization, advocating for “common sense solutions.”

Deep Look

The United States Postal Service (USPS) is set to undergo a dramatic workforce and budget reduction, as Postmaster General Louis DeJoy plans to cut 10,000 jobs and slash billions from the agency’s budget. In a letter sent to Congress on Thursday, DeJoy detailed his strategy, revealing that Elon Musk’s Department of Government Efficiency (DOGE) will be working closely with USPS to implement cost-saving measures.

USPS Workforce Reductions: What’s Happening?

USPS, a $78 billion-a-year agency, has long struggled with financial losses, citing a combination of declining mail volume, regulatory restrictions, and pension liabilities as contributing factors. DeJoy’s latest proposal aims to address these issues by:

• Cutting 10,000 employees in the next 30 days through a voluntary early retirement program.
• Partnering with Elon Musk’s DOGE to implement efficiency measures.
• Working with the General Services Administration (GSA) to further reduce costs.

This move is part of an ongoing effort to streamline USPS operations. The agency previously announced a $3.5 billion annual cost reduction goal, and cut 30,000 employees in 2021 under a similar restructuring plan.

In the letter to Congress, DeJoy highlighted USPS’s biggest financial hurdles, including:

• Mismanagement of retirement assets, leading to pension funding issues.
• Workers’ Compensation Program inefficiencies, affecting long-term employee costs.
• Regulatory constraints that restrict USPS’s ability to operate like a normal business.

DeJoy defended his plan, stating that while USPS has made progress, further reforms are necessary.

“This initiative aligns with our ongoing efforts,” DeJoy wrote. “While we have accomplished a great deal, there is much more to be done.”

The Role of Elon Musk’s DOGE in USPS Overhaul

One of the most controversial aspects of this restructuring plan is the involvement of DOGE (Department of Government Efficiency), a federal agency now overseen by billionaire Elon Musk.

While DOGE’s primary mission is to optimize government operations, critics worry that placing USPS under Musk’s influence could lead to privatization efforts or the introduction of a profit-driven business model that might undermine USPS’s public service mission.

The agreement also includes support from the General Services Administration (GSA), which will help USPS find further ways to cut costs and modernize operations.

Criticism & Concerns Over Privatization

The move to downsize USPS and involve Musk’s agency has sparked major opposition, especially from Democratic lawmakers and labor unions.

Rep. Gerald Connolly (D-VA), a vocal advocate for postal workers and public mail services, warned that turning USPS over to DOGE could lead to privatization and weaken mail services, particularly in rural areas.

“This capitulation will have catastrophic consequences for all Americans—especially those in rural and hard-to-reach areas—who rely on the Postal Service for mail, medications, ballots, and more,” Connolly said in a statement.

Critics argue that:

• USPS serves as a public service, not a profit-driven business. Privatization could increase prices and reduce accessibility for Americans.
• Job cuts will harm workers and their families, leading to economic instability for thousands.
• Rural communities and small businesses, which depend on USPS for essential services, will suffer disproportionately.

The Privatization Debate & Trump’s Influence

The debate over whether USPS should be privatized is not new. Former President Donald Trump has repeatedly called for USPS to be placed under the control of the Commerce Department, effectively making it part of the executive branch.

Trump, who has frequently criticized USPS for operating at a loss, has argued that the agency should be run more like a business. His administration previously pushed for privatization, but met strong resistance from lawmakers and the public.

Now, with Musk’s DOGE playing a role in USPS restructuring, concerns over a potential privatization push have resurfaced.

How Will Job Cuts Affect USPS Operations?

Currently, USPS employs approximately 640,000 workers, handling nationwide mail deliveries from major cities to remote islands. The planned 10,000 job cuts will likely impact:

• Delivery times, as a reduced workforce may struggle to meet demand.
• Customer service, with fewer employees handling logistics and support.
• Mail reliability, especially in rural communities where USPS is often the only affordable delivery option.

While DeJoy insists these cuts are about efficiency, postal worker unions are pushing back.

Postal Workers’ Union Responds

The National Association of Letter Carriers (NALC) strongly opposes the restructuring plan, stating that while they support finding solutions for USPS’s financial challenges, they will not accept efforts to privatize the Postal Service.

NALC President Brian L. Renfroe emphasized the importance of keeping USPS a public entity:

“Common sense solutions are what the Postal Service needs,” Renfroe said. “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 union is calling for:

• Alternative solutions to budget shortfalls that don’t involve massive layoffs.
• Legislative protections to prevent USPS privatization.
• Modernization efforts that preserve universal mail service without sacrificing jobs.

What’s Next for USPS?

With job cuts imminent and the USPS restructuring plan gaining momentum, the future of the Postal Service remains uncertain. Key developments to watch include:

1. The impact of job cuts – Will USPS still meet delivery demand with a reduced workforce?
2. The role of Musk’s DOGE – Will the agency push USPS toward privatization?
3. Political battles over USPS control – Will Congress intervene to stop potential privatization efforts?
4. Public response – Will Americans push back against USPS job cuts and restructuring?

For now, postal workers, lawmakers, and the public will closely monitor DeJoy’s next moves, as USPS navigates one of its most significant transformations in decades.

More on US News