A season full of twists is coming to the United States, as the United States Postal Service (USPS) has confirmed that more than 10,000 employees will be laid off as part of a plan to cut costs and address the financial crisis. This downsizing comes alongside an agreement with the Department of Government Efficiency (DOGE), an entity led by Elon Musk. Supposedly, this measure aims to optimize public spending in the country, like many other initiatives being implemented, but the announcement has not been well received by the community. Many believe this could be a strategy to privatize USPS and weaken one of the most essential services for citizens, especially in rural and remote areas.
But why is the Postal Service in crisis? How will this layoff affect workers and those who rely on its services? Here’s everything you need to know.
Why is the workforce being reduced?
Mainly due to growing financial problems. Although USPS generates approximately $78 billion per year, it still struggles to stay afloat. Why? Because of poor financial management at its core: retirement funds and labour compensations are not properly handled, making it even more difficult to meet regulatory requirements for generating more revenue.
According to USPS Postmaster General Louis DeJoy, this layoff will save $3.5 billion annually. With fewer employees, the service hopes to remain viable, though this could result in slower delivery times and a decline in service quality.
Other mass layoffs
This isn’t the first time this has happened to USPS. Back in 2021, they had to adjust their workforce by firing 30,000 people. Now, with 640,000 employees on staff, the upcoming layoff will directly impact many families who depend on these jobs for their livelihood.
What happens to the citizens?
Clearly, if 10,000 people lose their jobs, service efficiency will decrease, and some areas may not receive service at all. This means delays in mail delivery, economic losses in local and rural communities (as many families will be affected), and concerns that this move is an attempt to privatize the postal service to benefit private courier companies. Could it be true?
Critics
Of course, when it comes to privatization, not everyone is on board. Democrats in particular have strongly opposed the future that awaits USPS. Gerald Connolly, a representative from Virginia, has stated that this decision will have catastrophic consequences for the entire country, especially for those who rely on USPS for mail delivery, receiving medications, and other essential services.
What role does Elon Musk play in this?
The agreement with the Department of Government Efficiency (DOGE) has drawn a lot of attention because this entity is led by Elon Musk, who is well known for massive staff cuts at companies like Twitter and Tesla.
Musk has promoted automation and bureaucracy reduction as key strategies for improving government efficiency.
USPS is facing severe financial struggles, but cutting 10,000 jobs may only make things worse, as the consequences for both workers and citizens remain highly uncertain.
A public service cannot, or at least, should not, be privatized, even in times of crisis. It remains to be seen whether this situation will improve, but as things stand, everything points to a future privatization of this resource.