The postmaster of the United States knows that sooner or later, the Governor will convene the U.S. Postal Service.
Therefore, Louis Dejoy decided to work with him.
The country’s top postman signed a deal this week with the Elon Musk government’s Ministry of Efficiency to reform the service with a sprawling service from tropical Guam to the Alaska wilderness. Instead of waiting for the Governor’s crew to decide on change, Dejoy seeks to shape them.
“It’s a short and healthy conversation,” Dejoy said in an interview. “We’re in the competition.”
Read more:Postal service header tags Doge protocol to stimulate reform
He also wants to consolidate a series of reforms that have been underway over the past four years. This ancient post office, not noticed by most Americans, has been trying to reshape itself, cut spending, while moving to modern hub and spoke distribution systems, similar to competitors Joint parcel service Inc. and FedEx company
Dejoy’s “Delivery for America” reform program has produced limited results for customers at least, and many Americans are now waiting longer to get their emails. but letter For congressional leaders on Thursday, Dejoy touted the cuts and staff and said the service had a great day.
“The Post Office once faced an immediate threat of bankruptcy that would require taxpayers’ assistance,” he wrote. “Now, the postal service is finally going through an unprecedented period of growth and innovation.”
Dejoy has announced his intention to step down from the office, even if the 10 years of offering the U.S. plan has not been completed. President Donald Trump wants to serve privately orFold it to the Ministry of Commerceand Musk also demands privatization. By contrast, Dejoy’s letter calls for ensuring that some version of reform continues after he set out.
At least two Doge and GSA employees will work under Dejoy’s supervision in search of potential savings and efficiency, according to people familiar with the details of the plan. “It’s not an army,” DeJoy said. “I still run the organization.”
Reforming the nearly 250-year-old postal service, hiring 635,000 employees, is a complex task – partly due to its mission. Unlike private competitors, USPS isRequiredEven in the most remote places, regardless of sparse population, you can reach Americans. Indeed, both UPS and FedEx pay services to cover “last mile” delivery in many rural areas that would otherwise have difficulty operating in profitable situations. Although it is an independent government agency and not directly under the control of the White House, it faces legal requirements that regulations and private competitors do not have.
“The level of transformation required by the U.S. Post Office is basically a profitable network to become a profitable network in 2025, and Dejoy is actually able to continue on the dial, and there is a huge disconnect between the two,” said Derek Lossing, founder of logistics consulting firm Cirrus Global Advisors.
Huge losses
DejoyNearly $100 billion in lossesAnd it is expected to lose another $200 billion.
“When I got there, I didn’t think about how destructive we were,” Dejoy told Bloomberg in December.
He never thought of staying at the institution for so long. “I first came here for three years and fell in love with the people,” Dejoy said on Thursday. “It’s a very, very important job.”
Some of the changes he implemented are relatively simple, such as making sure the truck is full before going on the route, rather than sending out the driver of the mid-air trailer. Others are bigger, including integrating facilities and transferring numbers from expensive air transport to ground trucks. The service also established a series of 60 regional distribution centers.
He increases revenue by focusing more on packaging and raising interest rates,The cost of stampsIt rose 33% between January 2019 and July 2024. The service is largely self-funded through its operating income.
Dejoy also trims the service’s huge wages, reducing its workforce by 30,000 starting in fiscal 2021, with another 10,000 expected to set out to leave voluntarilyEarly retirement plan. However, for all changes, the service lost $9.5 billion last year, while on-time delivery of top-notch emails fell.
Dejoy believes that slower delivery is a pain of temporary growth. He is pushing employees to “strengthen and act like FedEx and UPS.” These are “strong organizations, we have a lot of transitions, a lot of heavy luggage.” The summer comes, “We’re going to swing.”
In the letter, Dejoy asked Congress to solve some problems that the service itself could not be. He said in particular that unfunded federal legislation authorized the agency’s annual expenses to $6 billion to $11 billion. He specifically targets the Postal Regulatory Commission, which oversees the price and performance of the service. He calls it an “unnecessary agent”, which is too much on “a flawed pricing model and decades of bureaucratic processes.”
“Defeat”
The committee fired immediately and issuedA statementOn Thursday, Dejoy’s program for the U.S. made the service less efficient and less performing, especially in rural areas. The commissioners also slammed his attention to the competitive packaging market, calling it a “strategy that has failed so far.”
In February, Dejoy asked the Postal Administration Commission to startLooking for his replacementhe hopes the process will take months rather than years. Even some critics of his plan, he took on a difficult task.
“His successor is simply put,”Paul StandlerSenior Fellow of the Lexington Institute, Virginia’s Center Right Think Tank. “His plan didn’t work, but give that guy some compliment. At least he fired the gun.”
Dejoy himself walked away with more confidence now. “They know what needs to be done, which is why I feel comfortable on vacation,” he said. “And if I get help with these issues, the postal service will be in good shape for a long time.”
This story was originally fortune.com
Source link
