The Blubber

USPS Signs Deal with DOGE to Cut Costs, Reduce Workforce

The United States Postal Service (USPS) has announced a new partnership with the Department of Government Efficiency (DOGE) aimed at reducing costs and streamlining operations.

In a letter to congressional leaders, Postmaster General Louis DeJoy revealed that he has signed an agreement with Elon Musk’s DOGE to implement job cuts and spending reductions at the agency, which has faced longstanding financial struggles.

“Last night, I signed an agreement with the General Services Administration and DOGE representatives to assist us in identifying and achieving further efficiencies,” DeJoy wrote. “While we have accomplished a great deal, there is much more to be done. We welcome this assistance in our mission.”

A Changing Postal Service

DeJoy emphasized that over the past four years, the USPS has undergone a transformation, shifting from a “battered government bureaucracy” into a higher-quality service provider. However, he acknowledged that the agency is still falling short of its financial goals.

The USPS, which operates as an independent agency, had remained largely untouched by DOGE’s efficiency measures in other government departments—until now.

Workforce Reductions and Key Challenges

As part of its restructuring, the USPS will cut 10,000 jobs within the next month through a voluntary early retirement program.

DeJoy stated that DOGE officials inquired about the major challenges facing the Postal Service. Among the issues he highlighted:

• Financial burdens caused by miscalculations and mismanagement in retirement plans, totaling billions in obligations.
• Problems within the Workers’ Compensation Program, contributing to excessive costs.
• Unfunded legislative mandates that require the agency to engage in costly activities without financial support.
• Regulatory constraints that hinder efficient operations and prevent the USPS from adopting modern business practices.

The agreement marks a significant step in DOGE’s expansion into USPS operations, as the agency seeks to reverse years of financial losses and ensure long-term sustainability.