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Postmaster General Louis DeJoy announced a plan to trim the USPS workforce by 10,000 employees through a voluntary early retirement program. In a letter to Congress on Thursday, DeJoy stated the goal is to cut costs at the financially struggling agency, which currently employs about 635,000 people. The retirement program was initially announced on January 13th.
Adding intrigue to the cost-cutting measures, DeJoy confirmed the involvement of the Department of Government Efficiency (DOGE), led by Elon Musk. DeJoy signed an agreement with the General Services Administration and DOGE to help identify further efficiencies within the USPS.
A source indicated this move is intended to appease DOGE. DeJoy’s first meeting with DOGE representatives reportedly took place earlier this week.
The collaboration will include an examination of the Postal Regulatory Commission, an agency DeJoy criticized in his letter, claiming it has caused over $50 billion in damages to the Postal Service. The commission fired back, calling DeJoy’s comments “false” and emphasizing its role in ensuring universal service and fair competition in the postal market.
This news comes as DeJoy prepares to step down from his position, though a successor has yet to be named by the White House. The Postal Service recently reported a nearly $10 billion loss for the fiscal year ending September 30, 2024.