The U.S. Postal Service is getting a major overhaul courtesy of Elon Musk’s efficiency team. In a stunning development that has Democrats fuming, Postmaster General Louis DeJoy has agreed to slash 10,000 jobs and billions from the struggling agency’s budget with help from Trump’s DOGE squad.
At a glance:
- Postmaster General Louis DeJoy signed an agreement with Elon Musk’s Department of Government Efficiency (DOGE) to cut 10,000 workers
- The financially troubled USPS has accumulated nearly $100 billion in losses with projected future losses of $200 billion
- Job cuts will occur through a voluntary early-retirement program to be implemented within 30 days
- Democrats fear the agreement could lead to privatization of the Postal Service
- The USPS has previously announced plans to reduce operating costs by over $3.5 billion annually
USPS Faces Financial Crisis
The United States Postal Service has officially partnered with Elon Musk’s Department of Government Efficiency (DOGE) in a bold attempt to rescue the agency from financial collapse. Postmaster General Louis DeJoy, appointed during President Trump’s first term, has characterized the Postal Service as having a “broken business model” with staggering losses approaching $100 billion.
The agreement aims to address significant issues at the $78 billion-a-year agency through major workforce reductions and operational reforms. Problems identified include mismanagement of retirement assets, inefficiencies in the Workers’ Compensation Program, and regulatory requirements that have restricted normal business practices.
Democrats and Unions Push Back
Democratic lawmakers have reacted with alarm to the partnership between the USPS and Musk’s efficiency team. Rep. Gerald Connolly didn’t mince words about the collaboration, stating, “The only thing worse for the Postal Service than DeJoy’s ‘Delivering for America’ plan is turning the service over to Elon Musk and DOGE so they can undermine it, privatize it, and then profit off Americans’ loss.”
The National Association of Letter Carriers has similarly expressed opposition to any privatization efforts. “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,” said NALC President Brian L. Renfroe.
The USPS is the latest federal agency to face cuts and efficiency programs as Elon Musk cracks down on wasteful spending across the board.
Transforming the Postal Service
New plans include cutting 10,000 employees through a voluntary early-retirement program. This follows previous announcements to reduce operating costs by over $3.5 billion annually and cut 30,000 workers.
DeJoy defended the partnership as necessary for the agency’s survival, saying, “This is an effort aligned with our efforts, as while we have accomplished a great deal, there is much more to be done.” The Postal Service has long struggled to balance its finances due to the steady decline of first-class mail, its most profitable service.
President Donald Trump has previously suggested placing USPS under the Department of Commerce, and the current partnership with DOGE could be a significant step toward implementing Trump’s vision for a more efficient, financially sustainable postal service despite fierce resistance from Democrats and postal worker unions.
