DOGE Announces Agreement With USPS to Cut 10,000 Workers
In another win for the Trump admin and conservatives, DOGE has announces an agreement with the U.S. Postal Service (USPS), allowing the department to cut 10,000 workers.
USPS signs agreement with DOGE, agrees to cut 10,000 workers: ‘Broken business model’ https://t.co/mjILW9qbPj— Fox News (@FoxNews) March 14, 2025
The layoffs will occur within the next 30 days through a voluntary early-retirement program.
U.S. Postmaster General Louis DeJoy informed members of Congress on Thursday about his agreement with DOGE, which is run by X CEO Elon Musk. As part of the agreement, DOGE will also cut billions of dollars from the service’s budget.
In her letter to Congress, DeJoy explained why he teamed up with DOGE, calling the Postal Service a “broken business model.”
“Fixing a broken organization that had experienced close to $100 billion in losses and was projected to lose another $200 billion, without a bankruptcy proceeding, is a daunting task,” DeJoy wrote.
“Fixing a heavily legislated and overly regulated organization as massive, important, cherished, misunderstood and debated as the United States Postal Service, with such a broken business model, is even more difficult,” he added.
As Fox News pointed out, DOGE will work to address the “big problems” that USPS faces. As part of the agreement, DOGE will help the agency identify “further efficiencies”
“This is an effort aligned with our efforts, as while we have accomplished a great deal, there is much more to be done,” DeJoy said, before listing multiple mismanagements in the agency.
DeJoy also took aim at the Postal Regulatory Commission, calling it “unnecessary.”
“The Post 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 that encumber the Postal Service,” DeJoy wrote.
“They have an anachronistic view of the Postal Service’s current business environment, they have failed to change as the times and the postal economy have changed, and they therefore stand in the way of the timely and necessary changes required to succeed as a self-funded enterprise in a competitive environment—which is what the Postal Service needs to do to survive,” he added.
In response, the Postal Regulatory Commission called DeJoy’s comments “false.”
“The Postmaster General’s statements about the Postal Regulatory Commission’s role during the recent mismanagement of USPS are false. The Commission follows the law to ensure that USPS provides universal service to all Americans, including those in rural and remote locations, and also safeguards fair competition in package markets by preventing the Postal Service from abusing its monopoly position,” the commission said.
The independent agency continued by saying it has “done more than its part” in helping USPS thrive. Notably, the commission was established in 1970 by the Postal Reorganization Act.
“The Commission has done more than its part to help USPS. In addition to pricing flexibility, the Commission, as required by law, has approved thousands of specialized contracts between USPS and customers in recent years. The Commission approved these negotiated service agreements rapidly, while working to make sure USPS does not compete unfairly with private sector shipping competitors. The Commission has done this work along with its other statutory responsibilities with fewer than 100 staff members,” the agency said.
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