US General Postmakers Louis Dayoy informed Congress members on Thursday he signed an agreement with the General Services Administration and Elon Musk’s Efficiency Department to cut 10,000 employees and billions of dollars from the US Postal Service.
In a letter to Congress, Dejoy mourned that the postal service has a “broken business model that was not financially stable without critical and essential changes”.
“The fixing of a broken organization that had experienced about $ 100 billion of losses and was projected to lose $ 200 billion without a bankruptcy procedure, is a scary task,” Dejoy wrote. “Fastening a highly adopted and highly regulated organization as massive, important, loving, misunderstood and debated as the United States postal service with such a broken business model, is even harder.”
Doge will help USPS address the “big problems” to the agency $ 78 billion a year, which has sometimes fought in recent years to stay at sea. The agreement aims to help the postal service identify and achieve “further efficiency”.
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Postmaster General Louis Dejoy testifies to a home surveillance and reform Committee hearing on the Capitol Hill Postal Service, Monday, August 24, 2020, in Washington. (Tom Brenner/Pool through AP)
USPS listed issues such as mismanagement of agency pension assets and workers’ compensation program, as well as a series of regulatory requirements that the letter described as “restricting normal business practice”.
“This is an effort related to our efforts, as we have achieved a lot, there is much more to do,” Dayoy wrote.
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Critics of the deal fear that the negative effects of cuts will be felt throughout America. US Democratic Department Gerald Connolly, of Virginia, who was sent with a paper, said the return of the postal service to the Doge would result in it undermined and privatized.
Ranking member rep. Gerald Connolly, D-V., Gives opening remarks during a home surveillance and listening to the Government Reform Committee on Holy City Policies in the US Capitol on March 5, 2025, in Washington, DC (Kayla Bartkowski/Getty Images)
“The only thing worse for the postal service than the plan of America’s” Delivery “of Dejoy is to return to Elon Musk and Dage so that they can undermine it, privatize it and then benefit the loss of Americans,” Connolly said in a statement.
He added: “This capitulation will have catastrophic consequences for all Americans – especially those in rural and difficult to reach areas – who rely on postal service every day to give mail, medications, ballots and more. Reliable mail delivery cannot only be reserved for Maga supporters and Tesla owners.”
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The president of the National Association of Carriers of the Letters of Brian L. Renfroe said in a statement in response to Thursday’s letter that they welcome anyone to address some of the biggest problems of the agency, but stood firmly against any movement to privatize postal service.
“Common sense solutions are those that need for the postal service, not privatization efforts that will threaten 640,000 post employees, 7.9 million jobs related to our work, and every American service is supported daily,” he said.
The USPS currently employs about 640,000 workers in charge of making shipments, from domestic cities to rural areas and even remote islands.
Elon Musk met with members of the Doge Senate Group in the White House. (Getty Images)
The service plans to cut 10,000 employees in the next 30 days through an early pension voluntary program, according to the letter.
The agency previously announced plans to reduce its operating costs by more than $ 3.5 billion a year. And this is not the first time that thousands of employees have been cut. In 2021, the agency trimmed 30,000 workers.
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While the service, which has operated as an independent entity since 1970, has fought to balance books with the fall of the first class post, he has fought calls by President Donald Trump and others to be privatized.
Last month, Trump said he could decide the USP under the control of the Department of Trade in what would be an executive branch.
Jessica Sonkin of Fox News Digital and Associated Press contributed to this report.