USPS Collaborates with DOGE and Announces Layoff of 10,000 Employees

On Thursday, U.S. Postmaster General Louis DeJoy informed Congress that he has established an agreement with the Department of Government Efficiency (DOGE) and the General Services Administration (GSA) to collaborate with the U.S. Postal Service.

“This effort aligns with our ongoing initiatives. Though we have made significant progress, there remains much to accomplish,” DeJoy wrote. “We are pleased to have others join us in this important cause. The DOGE team graciously inquired about the major issues they can assist us with.”

DeJoy indicated that DOGE and the GSA would concentrate on evaluating the “mismanagement of our self-funded retirement assets and the actuarial miscalculations of our retirement obligations.”

They will also investigate what he referred to as the “mismanagement of our Workers’ Compensation Program,” which he claims incurs an additional $400 million annually compared to private sector norms.

Additionally, they will examine what DeJoy described as the “unfunded mandates imposed on us by legislation,” which generally obligate the agency to “undertake costly activities without offering any accompanying funding.”

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DeJoy compared the situation to UPS or FedEx providing services to the federal government at no charge, noting that it costs the agency between $6 billion and $11 billion each year.

DOGE and the GSA will also investigate “regulatory burdens that impede normal business operations,” he explained.

DeJoy mentioned that these regulations have cost the postal service over $50 billion in damages by burdening it with “administering flawed pricing models and outdated bureaucratic procedures.”

“It has long been evident that the Postal Service operates under a flawed business model that is not financially viable without essential and fundamental changes,” DeJoy stated. “Revamping an organization that has faced nearly $100 billion in losses and was projected to incur another $200 billion in losses, without entering bankruptcy, is an arduous task.”

10,000 Workers to Enter Voluntary Retirement

Since 1970, USPS has functioned as an independent entity but has continuously struggled to maintain fiscal balance, a challenge exacerbated by rising inflation.

DeJoy pointed out in his correspondence with congressional lawmakers that the agency let go of 30,000 employees in 2021 as part of cost-reduction measures. He announced plans to reduce another 10,000 employees within the next 30 days via a voluntary early retirement scheme.

Trump suggested last month that he may transfer the USPS under the Commerce Department’s control, representing an executive branch takeover of the agency.

“We aim to have a functioning post office that doesn’t incur massive losses,” Trump remarked at the time. “We’re considering this approach. It could be seen as a merger, but it will still retain its identity as the Postal Service, and I believe it will operate much more effectively.”

In regard to privatizing the service, Trump stated in December, “That’s an idea that many have pondered for quite some time. We are examining it.”

The Epoch Times reached out to the White House for further remarks but did not receive a reply prior to the publication deadline.

However, Renfroe criticized any attempts to privatize the service.

“What the Postal Service needs are practical solutions, not privatization efforts that jeopardize the employment of 640,000 postal workers, impact 7.9 million jobs associated with our work, and threaten the universal service relied upon by Americans every day,” he voiced.

The Associated Press contributed to this report.