USPS Partners with Elon Musk's DOGE to Eliminate Waste in Cost Cutting Overhaul
The United States Postal Service (USPS) has teamed up with Elon Musk‘s Department of Government Efficiency (DOGE) to identify wasteful spending and cut 10,000 employees.
Postmaster General Louis DeJoy said that USPS made a deal with DOGE and the General Services Administration to assist in identifying and achieving further efficiencies.
“This is an effort aligned with our efforts, as while we have accomplished a great deal, there is much more to be done,” DeJoy wrote.
“We are happy to have others assist us in our worthwhile cause. The DOGE team was gracious enough to ask about the big problems they could help us with.”
DeJoy also listed other cost-cutting measures since becoming postmaster general in 2021.
Over the past 20 years, USPS has consistently lost money before being rescued by a $107 billion taxpayer bailout in 2023.
“Over the last four years, the Postal Service has engaged in transforming from a battered government bureaucracy with substantial financial losses destined for collapse, to an organization that is aspiring and engaging in practices that will enable us to provide high-quality service to the nation for decades to come and to have a financially viable future,” he said.
The new cuts included slashing 30,000 positions, with another expected 10,000 through a voluntary early retirement deal.
He also said they have eliminated unnecessary ground and air transportation needs through better routing practices.
According to DeJoy, much of the waste came from mismanagement of the organization’s self-funded retirement system and the workers’ compensation program.
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“Fixing a broken organization that had experienced close to $100 billion in losses and was projected to lose another $200 billion, without a bankruptcy proceeding, is a daunting task,” DeJoy said.
DeJoy blamed the Postal Regulatory Commission for the problems, which he called an “unnecessary agency” that has “inflicted over $50 billion” in waste through “defective price models” and bureaucratic processes.
The Postal Regulatory Commission responded to DeJoy’s letter by calling his claims “false.”
“The Commission follows the law to ensure that USPS provides universal service to all Americans, including those in rural and remote locations, and safeguards fair competition in package markets by preventing the Postal Service from abusing its monopoly position,” the commission said.
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