USPS Plans Massive Layoffs: 10,000+ Jobs Cut Amid Privatization Talks

Washington — The U.S. Postal Service (USPS) has entered into an agreement with Elon Musk's Department of Government Efficiency (DOGE) to eliminate 10,000 positions from its budget, aiming to save billions of dollars, according to foreign media reports.

Postmaster General Louis DeJoy stated that DOGE will focus on improving the management of USPS retirement assets and workers' compensation programs while addressing the agency's legislative mandates and regulatory requirements. USPS currently employs approximately 64,000 workers across the U.S., delivering goods from urban centers to rural areas and remote islands.

This is not USPS's first major workforce reduction. Since 2021, the agency has already cut about 30,000 jobs and plans to eliminate an additional 10,000 within 30 days through a voluntary early retirement program. These measures follow USPS's earlier announcement to reduce operational costs by over $3.5 billion annually.

The agreement has drawn significant criticism. Opponents warn that budget cuts will negatively impact communities nationwide, particularly rural and remote areas where residents rely on USPS for essential services such as mail, medications, and ballots.

USPS's financial struggles are long-standing. Since 2007, the agency has accumulated over $100billioninlosses.ForthefiscalyearendingSeptember2024,itreportedanetlossof$9.5 billion, up from $6.5billionthepreviousyear.Toaddressthesechallenges,USPSintroducednewservicestandardslastmonth,projectedtosaveatleast$36 billion over the next decade.

The rise of digital communication has severely impacted USPS's traditional mail business. First-class mail volume has declined by 80% since 1997, reaching its lowest level since 1968.

Meanwhile, the Trump administration is considering sweeping reforms to USPS. According to U.S. media reports, former President Trump plans to dismiss the Postal Service Board of Governors and is exploring a merger between USPS and the Commerce Department. This move is seen as a potential step toward privatization, which could fundamentally alter how Americans access critical services, including online shopping, prescription drugs, checks, and mail-in voting.

The proposed changes come as USPS remains a vital lifeline for many communities, handling 40% of Amazon's last-mile deliveries and approximately 120 million prescription shipments annually. Critics argue privatization could lead to service reductions, while supporters claim it may modernize the financially strained agency.