USPS to Cut 10,000 Jobs Under New Agreement with Elon Musk’s Department of Government Efficiency

The U.S. Postal Service (USPS) has announced plans to cut 10,000 jobs and billions of dollars from its budget as part of a broader reform effort in collaboration with Elon Musk’s Department of Government Efficiency (DOGE). The move, outlined in a letter sent to Congress on Thursday by Postmaster General Louis DeJoy, marks a significant restructuring of the $78 billion-a-year agency, which has long struggled with financial sustainability.

The Agreement with DOGE

Under this new partnership, Elon Musk’s DOGE will assist USPS in tackling systemic inefficiencies, including retirement asset mismanagement, workers’ compensation challenges, and restrictive regulatory requirements. The General Services Administration (GSA) will also help identify additional cost-saving measures.

Louis DeJoy, appointed as Postmaster General during former President Donald Trump’s first term in 2020, framed the agreement as a necessary step toward modernization. “This is an effort aligned with our goals. While we have accomplished a great deal, there is much more to be done,” DeJoy stated.

The planned job cuts will be executed through a voluntary early retirement program, which was initially announced in January under the Biden administration but only now includes a specific target of 10,000 positions. USPS previously cut 30,000 jobs in 2021 for a broader cost-reduction effort.

Political and Public Backlash

The proposed workforce reduction and Elon Musk’s DOGE’s involvement have sparked criticism from lawmakers and labor leaders. Rep. Gerald Connolly (D-VA) warned that turning over USPS reforms to Musk’s agency could lead to privatization and service cutbacks, particularly affecting rural communities and those dependent on USPS for essential services like prescription medications and mail-in ballots.

BREAKING: Ranking Member @GerryConnolly’s Statement on DOGE infiltration of @USPS: https://t.co/dK4oPCX1qE pic.twitter.com/aTrbwlyXPz

— Oversight Committee Democrats (@OversightDems) March 13, 2025

“This capitulation will have catastrophic consequences for all Americans—especially those in rural and hard-to-reach areas—who rely on the Postal Service every day to deliver mail, medications, ballots, and more,” Connolly said in a statement.

Additionally, Brian L. Renfroe, President of the National Association of Letter Carriers, voiced concerns that USPS could be moving toward privatization, which would jeopardize the 640,000 employees currently working for the agency, as well as 7.9 million jobs tied to the postal industry. “Common sense solutions are what the Postal Service needs, not privatization efforts that will threaten jobs and universal service every American relies on daily,” Renfroe said.

The Future of USPS Under DeJoy and Trump

USPS has been operating as an independent government entity since 1970, but financial struggles, declining first-class mail volume, and rising operational costs have led to repeated calls for reform.

During his presidency, Trump repeatedly suggested privatizing USPS and placing it under Commerce Department control. Last month, he reiterated this idea, raising concerns that executive action could restructure USPS entirely if he is re-elected in 2024.

Neither the USPS nor the Trump administration immediately responded to requests for comment regarding the potential for further restructuring.

A Precedent for Change

While Louis DeJoy’s tenure has been controversial, his reforms have been aimed at cutting costs and increasing efficiency amid declining revenue. However, critics argue that these cost-cutting measures, including job losses and service reductions, could undermine the reliability of mail services for millions of Americans.

As USPS embarks on another major overhaul, the debate over the balance between efficiency, privatization, and public service will likely intensify in the coming months.