US Postal Service Signs Deal With DOGE, Cuts 10,000 Employees and Billions in Budget

(CLO) US Postal Service (USPS) General Manager Louis DeJoy informed Congress on Thursday that he has signed an agreement with Elon Musk's General Services Administration and Department of Government Efficiency (DOGE) to cut 10,000 employees and billions of dollars from the agency's budget.

In a letter to Congress , DeJoy stressed that the USPS is in an unsustainable financial situation and needs to make sweeping changes. He called it a “bankrupt” organization that has lost nearly $100 billion and could lose another $200 billion in the future.

The new agreement will help the USPS improve its performance amid persistent challenges, with annual revenue of $78 billion. The agency identified major issues such as pension mismanagement, workers’ compensation costs and regulatory constraints that affect normal business operations.

US Postmaster General Louis DeJoy. Photo: GI

DeJoy described the move as necessary, but many lawmakers and organizations have spoken out against it. Democratic Representative Gerald Connolly warned that the partnership with DOGE could pave the way for privatization of the USPS, which would harm public services.

He criticized the move as "a surrender that would have dire consequences for Americans, especially rural communities that rely on the postal service to receive mail, medicine and ballots."

The National Postal Service Association also expressed concern, stressing that "USPS needs a common-sense solution, not privatization," which could threaten the jobs of 640,000 current employees and nearly 8 million indirect jobs.

The USPS plans to cut 10,000 jobs in the next 30 days through a voluntary early retirement program. The agency laid off 30,000 employees in 2021 in an effort to save costs.

Ngoc Anh (according to Fox News, CNBC)

Source: https://www.congluan.vn/buu-dien-my-dong-y-cat-giam-10000-nhan-vien-va-hang-ty-usd-ngan-sach-post338544.html