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In a significant development, Postmaster General Louis DeJoy revealed plans for substantial workforce reductions and budget cuts at the U.S. Postal Service, partnering with Elon Musk’s Department of Government Efficiency (DOGE), according to congressional correspondence released Thursday.

The collaboration between USPS and DOGE aims to tackle major challenges facing the $78 billion annual operation, which has experienced financial difficulties in recent years. The partnership, which includes the General Services Administration, seeks to identify areas for operational improvements and cost reduction.

The agency highlighted several concerns, including poor management of retirement funds and the Workers’ Compensation Program, along with regulatory constraints that impede standard business operations.

DeJoy expressed support for the initiative, stating, “This is an effort aligned with our efforts, as while we have accomplished a great deal, there is much more to be done.”

However, the announcement has sparked concerns among critics. Representative Gerald Connolly, a Virginia Democrat who received the notification, expressed alarm about potential privatization. “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,” he stated.

The postal workforce, currently numbering approximately 640,000 employees, serves communities nationwide, from urban centers to remote locations. The proposed reduction targets 10,000 positions through voluntary early retirement within 30 days.

Neither postal officials nor Trump administration representatives provided immediate responses to Associated Press inquiries.

This reduction follows previous cost-cutting measures, including a $3.5 billion annual operational expense reduction and the elimination of 30,000 positions in 2021. The independently operating agency has resisted privatization pressure from President Trump and others while struggling with declining first-class mail revenue since 1970. Recently, Trump suggested placing USPS under Commerce Department control.

National Association of Letter Carriers President Brian L. Renfroe welcomed assistance with organizational challenges but opposed privatization: “Common sense solutions are what the Postal Service needs, not privatization efforts that will threaten 640,000 postal employees’ jobs, 7.9 million jobs tied to our work, and the universal service every American relies on daily.”

DeJoy, appointed in 2020 and known for his Republican ties and logistics industry background, has navigated various challenges during his leadership, including pandemic-related disruptions, increased mail-in voting, and implementing controversial efficiency measures.