U.S. Postmaster General Louis DeJoy informed members of Congress on Thursday he has signed an agreement with the General Services Administration and Elon Musk’s Department of Government Efficiency to cut 10,000 workers and billions of dollars from the U.S. Postal Service budget.
In a letter to Congress, DeJoy lamented that the Postal Service has a "broken business model that was not financially sustainable without critically necessary and core change."
"Fixing a broken organization that had experienced close to $100 billion in losses and was projected to lose another $200 billion, without a bankruptcy proceeding, is a daunting task," DeJoy wrote. "Fixing a heavily legislated and overly regulated organization as massive, important, cherished, misunderstood and debated as the United States Postal Service, with such a broken business model, is even more difficult."
DOGE will assist USPS with addressing "big problems" at the $78 billion-a-year agency, which has sometimes struggled in recent years to stay afloat. The agreement aims to help the Postal Service identify and achieve "further efficiencies."
[caption id="attachment_28882" align="alignnone" width="1440"] Postmaster General Louis DeJoy testifies before a House Oversight and Reform Committee hearing on the Postal Service on Capitol Hill, Monday, Aug. 24, 2020, in Washington. (Tom Brenner/Pool via AP)[/caption]
USPS listed such issues as mismanagement of the agency's retirement assets and Workers' Compensation Program, as well as an array of regulatory requirements that the letter described as "restricting normal business practice."