U.S. Postmaster General Louis DeJoy has announced plans to cut 10,000 jobs and reduce the U.S. Postal Service (USPS) budget by billions, working in collaboration with Elon Musk’s Department of Government Efficiency (DOGE). The initiative, outlined in a letter to Congress on Thursday, also involves the General Services Administration in an effort to improve efficiency within the agency.

DOGE will support USPS in tackling major operational challenges at the $78 billion-a-year organization, which has faced financial struggles in recent years. The agreement aims to streamline operations, including addressing mismanagement of retirement funds, the Workers’ Compensation Program, and various regulatory constraints that the letter describes as hindrances to “normal business practices.”

“This initiative aligns with our ongoing reform efforts. While we have achieved significant progress, much more remains to be done,” DeJoy stated in the letter.

However, critics argue that the proposed cuts could have severe consequences nationwide. Democratic Representative Gerald Connolly of Virginia, who received the letter, warned that DOGE’s involvement could undermine the Postal Service and push it toward privatization.

“This surrender will have devastating effects on Americans—particularly those in rural and remote areas—who depend on USPS for essential services like mail, medication deliveries, and ballots,” Connolly said in a statement.

USPS, which currently employs around 640,000 workers, plans to implement the job cuts within 30 days through a voluntary early retirement program, according to the letter. Neither USPS nor the Trump administration responded to requests for comment from The Associated Press.

The postal agency had previously announced measures to reduce operating costs by more than $3.5 billion annually. In 2021, it eliminated 30,000 positions as part of broader cost-cutting efforts. Amid declining first-class mail volumes, USPS has struggled to remain financially viable while resisting calls for privatization, including proposals from former President Donald Trump to place the service under the Commerce Department’s jurisdiction.

Brian L. Renfroe, president of the National Association of Letter Carriers, acknowledged the need for solutions to USPS’s challenges but opposed any moves toward privatization.

“The Postal Service requires practical, common-sense solutions—not privatization efforts that jeopardize 640,000 jobs, 7.9 million related positions, and the universal mail service that Americans rely on daily,” Renfroe stated.

DeJoy, a former logistics business owner and Republican donor, was appointed as postmaster general during Trump’s first term in 2020. His tenure has been marked by significant challenges, including the COVID-19 pandemic, increased mail-in voting, and efforts to mitigate financial losses through cost-cutting and service reductions.

Source: With input from agency