USPS strikes deal with Elon Musk’s DOGE team for – Business News
U.S. Postmaster General Louis DeJoy instructed Congress he signed an settlement with Elon Musk’s DOGE authorities reform team to supply help to the money-losing company as it really works to handle “big problems.”
USPS, an impartial authorities company with 635,000 staff that misplaced $9.5 billion final yr, has been exempt from DOGE-directed federal worker reductions.
DeJoy instructed Congress in a letter seen by Reuters that USPS plans to cut back its workforce by 10,000 employees within the subsequent month by way of a voluntary early retirement program first introduced in January.
The Post Office has cut 30,000 jobs since 2021.
USPS has now been exempt from DOGE-directed federal worker reductions after U.S. Postmaster General Louis DeJoy instructed Congress he signed an settlement with Elon Musk’s DOGE authorities reform team to supply help to the company. AP
DeJoy mentioned the settlement with DOGE and the General Services Administration will permit the federal government reform team to “assist us in identifying and achieving further efficiencies…. The DOGE team was gracious enough to ask for big problems they can help us with.”
DOGE is working throughout authorities to cancel contracts and shrink companies.
DeJoy cited a quantity of points together with management of retirement property and its employees’ compensation program by different authorities companies, unfunded mandates and burdensome regulatory necessities.
DeJoy has led a dramatic effort to restructure the post workplace over the past 5 years — together with slicing forecasted losses from $160 billion to $80 billion over a decade– that has used comparable techniques to the DOGE team together with shrinking the workforce and canceling or renegotiating contracts.
He mentioned the Postal Regulatory Commission “is an unnecessary agency that has inflicted over $50 billion in damage to the Postal Service by administering defective pricing models and decades-old bureaucratic processes.”
DeJoy instructed Congress in a letter sen by Reuters that the company plans to scale back its workforce by firing 10,000 employees subsequent month by way of a voluntary early retirement program. AFP by way of Getty Images
Representative Gerald Connolly, high Democrat on the committee overseeing USPS, mentioned DeJoy was permitting DOGE to “infiltrate” the company, suggesting DOGE would “undermine it, privatize it, and then profit off Americans’ loss.”
GSA and DOGE didn’t instantly remark.
Last month, two media shops reported President Donald Trump was getting ready to situation an government order to fire the Postal Service board of governors.
The White House denied the plan however Trump mentioned he was contemplating merging the Postal Service with the U.S. Commerce Department, a transfer Democrats mentioned would violate federal law.
Since 2021, USPS has cut 30,000 jobs. CJ GUNTHER/EPA-EFE/Shutterstock
Musk, a billionaire high adviser to Trump, mentioned final week he thought USPS ought to be privatized.
Commerce Secretary Howard Lutnick has mentioned the Postal Service may help shrink the division’s prices by offering employees to conduct the U.S. census and deal with duties carried out by 20,000 Social Security staff.
The Postal Service is adopting new service requirements that may save the company not less than $36 billion over 10 years.
The Postal Service has misplaced more than $100 billion since 2007.
Last month, it reported a fourth-quarter revenue of $144 million.
As digital communications have proliferated, the company has been harm by an 80% decline in first-class mail quantity since 1997.
Volumes at the moment are on the lowest degree since 1968.
DeJoy introduced final month he plans to go away after about 5 years on the job.
