The US Postal Service (USPS) has announced plans to reduce its workforce by 10,000 employees as part of a broader strategy to modernize operations and achieve financial sustainability. The initiative, called “Delivering for America,” aims to cut costs and improve the agency’s outlook.
Under the plan, postal service CEO Louis DeJoy will work with Elon Musk’s Department of Government Efficiency (DOGE) to streamline operations and reduce expenses. The layoffs are part of a larger effort to address financial struggles that have plagued the USPS in recent years.
The agency has reported cumulative losses totaling $98 billion since fiscal year 2007, primarily due to declining mail volumes and the cost of pre-funding retiree health benefits. To mitigate these losses, the USPS plans to reduce its workforce by $36 billion over the next decade.
However, critics argue that the layoffs could lead to negative impacts on mail service quality, particularly in rural areas where services are already experiencing challenges. The involvement of DOGE has also sparked concerns about potential privatization and reduced service quality.
The 10,000 layoffs will be implemented within the next 30 days, targeting administrative and managerial roles. While frontline delivery personnel will not be significantly impacted, some critics worry that further reductions could exacerbate existing issues.
The USPS has struggled with financial difficulties for years, and the current budget stands at $78 billion per year. Despite these challenges, the agency remains committed to finding solutions to improve its operations and services.
As the USPS navigates this significant change, it will be crucial to consider the potential repercussions on mail service quality and ensure that consumers and businesses continue to receive reliable and efficient services.
Source: https://www.forbes.com/sites/chriswestfall/2025/03/15/postal-service-to-layoff-10000-employees-via-new-deal-with-doge