US mail service plans to shorten 10,000 jobs: what to know is

The General Postmeister Louis Dejoy plans to reduce 10,000 jobs and to reduce billions from the US postal service budget and to work together in coordination with the efficiency of the government of Elon Musk.

Dogen will tackle the USPS in the “big problems” attacks at the $ 78 billion a year, which has been financially struggling in recent years. The agreement also includes the General Services Administration (GSA) to identify and implement “further efficiency”.

Why is it important

The USPs, which employ about 640,000 employees, recorded a loss of 9.5 billion US dollars in the financial year until September 2024. These recent efforts are part of a broader attempt to contain the costs, since the agency uses demands for privatization and potential restructuring under the administration of President Trump.

What to know?

In the letter, the mismanagement of pension assets, problems in the context of the employee compensation program and regulatory restrictions that the USPS claims to restrict “normal business practices”.

The planned personnel reductions will be carried out by a voluntary early pension program, which was first announced in January, which has now been expanded to state the number of employees expected by the employees.

In the letter, Dejoy emphasized topics, including mismanagement, inefficiencies of the employee compensation program and restrictive regulations. He argues that these regulations prevent the USPS from operating like a typical company.

“This initiative corresponds to our broader efforts,” wrote Dejoy. “Although we have achieved a lot, there is much more to do.”

The USPS have been exposed to a significantly financial pressure for years, partly due to many years of regulations such as the mandatory six-day mail delivery plan, which critics say to limit profitability. Dejoy asked the legislator to check these restrictions and emphasized that it prevented the agency from making necessary operational changes.

The letter has once again sparked concerns about the future of the postal service, especially with regard to its independence. These developments occur in the middle of Trump’s consideration of moving the USPs under the responsibility of the trade department, a change that she puts directly under the control of the executive.

Democrats have consistently identified against the efforts they consider to be interfered with the USPS operations and warn that such risk privatizations and there could be essential services, especially for rural communities.

The unions have also expressed their concerns. The President of the National Association of Letter Carrier, Brian L. Renfroe, warned that the USPS requires practical, sensible solutions instead of privatization efforts that could endanger the jobs of 640,000 postal workers.

What people say

President Donald Trump about the involvement of the USPs into the Ministry of Commerce: “We want to have a post office that works well and does not lose massive money. And we are thinking about it.”

Democratic representative Gerald Connolly in a statement: “This surrender will have catastrophic consequences for all Americans – especially in rural and difficult -to -reach areas – that rely on the postal service every day to deliver mail, medication, ballot papers and much more.”

Doge Head Elon Musk during a virtual appearance on Morgan Stanley Technology, Media and Telecom Conference: “I think logically we should privatize everything that can reasonably be privatized. I think we should privatize the post office and Amtrak, for example … we should privatize everything we can.”

The President of the National Association of Postmen Brian L. Renfroe in a statement: “Common sense solutions are what the postal service needs, no privatization efforts that threaten 640,000 jobs of the postal workers, threaten 7.9 million jobs associated with our work, and the universal service on which every American relies daily.”

What happens next

DeJOYS letter did not provide a specific schedule for the impairment of the daily operation of the USP. However, it was confirmed that 10,000 job cuts would be implemented within 30 days, which makes it one of the greatest reductions in USPS in recent USPS history.

This story includes reporting from the Associated Press.

Update the 14.01.25, 5:17 p.m. ET: This article has been updated with additional information.