US President-elect Donald Trump is considering privatizing the US Postal Service, according to reports. The agency has reported a net loss of $9.5 billion for its fiscal year ending September 30, largely due to increased non-cash workers’ compensation expense.
Trump stated that the government should not subsidize the organization and expressed interest in privatization with his pick for commerce secretary, Howard Lutnick. Preliminary conversations about major changes to USPS have also taken place among those working on the Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy.
USPS has reduced its operations by 45 million work hours over the past three years and cut transportation spending by $2 billion. The agency is seeking regulatory approval for a modernization plan that would save between $3.6-$3.7 billion annually.
Privatizing USPS could disrupt the e-commerce industry, including Amazon, which relies on the service for “last-mile” delivery. Small businesses and rural consumers also rely heavily on the Postal Service, making it essential to maintain its operations.
Source: https://www.yahoo.com/news/trump-considers-privatizing-u-postal-131313188.html