The US Postal Service can be seen in New York Metropolis on February thirteenth, 2025.
Daniel Devries | CNBC
US Publish Officer Louis DeJoy instructed Congress he had signed an settlement with Elon Musk’s Doge Authorities Reform Workforce to offer help to money-losing businesses to work to handle “massive issues.”
USPS, an unbiased authorities company with 635,000 workers that misplaced $9.5 billion final yr, is exempt from chopping DOGE-oriented federal workers. Dejoy instructed Congress in a letter that Reuters noticed that it plans to chop 10,000 staff in its workforce subsequent month by a voluntary early retirement program.
Dejoy stated the settlement between Doge and the Common Companies Administration will permit the federal government reform group to “assist establish and obtain additional effectivity.”
Dejoy cited many points, together with the improper administration of retirement property by different authorities businesses and its staff’ compensation packages, unfunded obligations, and burdensome regulatory necessities.
Dejoy has led a dramatic effort to rebuild the submit workplace over the previous 5 years, utilizing related techniques with the Doge group to incorporate decreasing the workforce and canceling or renegotiating contracts.
He stated the Postal Regulation Fee is “an pointless establishment that has brought about greater than $50 billion in harm to postal companies by managing flawed pricing fashions and bureaucratic processes which have been many years in the past.”
Final month, two media shops reported that President Donald Trump was making ready to situation an government order to fireplace the Postal Service Fee. The White Home denied the plan, however Trump stated the transfer Democrats stated they had been violating federal legislation and that he’s contemplating a merger between the Publish Workplace and the U.S. Division of Commerce.
Musk, the highest adviser to Trump’s billionaire, stated final week he thought the postal service needs to be privatized.
Commerce Secretary Howard Luttonick says postal companies will assist cut back division prices by offering staff to deal with the duties carried out by 20,000 Social Safety workers.
The Publish Workplace stated final month it was adopting new service requirements that may save not less than $36 billion over a decade.
Postal Companies have misplaced greater than $100 billion since 2007. This contains $9.5 billion for the 12 months ended September thirtieth. Final month, it reported fourth quarter income of $144 million.
As digital communications develop, establishments have been harm since 1997 by an 80% decline in top-class mail. Since 1968, the amount has been at its lowest degree.
Dejoy introduced final month that he plans to retire in about 5 years.
