American postmaster wants Elon Musk’s DOGE to save ‘broken’ USPS

The American Post Office Director knew that sooner or later, Dog will contact the American Post service.

So Louis Digoy decided to work with him.

The two best hours in the country this week signed an agreement with the government efficiency management in Elon Musk to cooperate in reforms in the sprawling service, which provides messages and firmness from tropical to the wilderness in Alaska. Instead of waiting for the Doug crew to dictate the changes, Dejoy seeks to form them.

“This was a short and healthy conversation,” Digoy said in an interview. “We are out of races.”

Read more: The head of the postage service signs the Doug agreement to stimulate the reforms

He also wants to strengthen a series of reforms he follows during the past four years. No one has noticed it by most Americans, the esteemed post office tries to re -invent itself, reduce expenditures with the conversion to the axis axis distribution system and the united Parcel Service Inc. And Fedex Corp.

For customers, at least, the “receipt” reform plan for Digoy for America has produced limited results, as many Americans are now waiting for a longer time to get their mail. But in a letter to Congress leaders on Thursday, she revealed the Doge deal, described Dejoy costs – and employees – they already lower and said the service is going to better days.

“The postal service once faced an immediate threat to insolvency, which would have been required to save the taxpayers,” he wrote. “Now, the postal service is finally witnessing an unprecedented period of growth and innovation.”

Dejoy has already announced that he intends to step down from his office, although the 10 -year delivery plan for America has not reached the middle of the road. President Donald Trump has thought about taking or folding private service in the Ministry of Commerce, while Musk also called for privatization. On the other hand, he invited a Digoy message to ensure that a copy of his own reforms will continue after his departure.

At least two DOGE and GSA employees will work under the supervision of Dejoy, and to search for potential savings and competencies, according to a person familiar with the details of the plan. “It is not an army.” “I still manage the organization.”

The 250-year-old postal service, which employs 635,000 people, is a complicated task-partly because of its mandate. Unlike its competitors from the private sector, USPS must access Americans even in the most remote places, regardless of the extent of its population. In fact, UPS and FEDEX pay both the service to cover the “last mile” delivery processes in many rural areas where they will fight otherwise to work profitable. Although it is an independent government agency, not directly under control of the White House, it faces the legal regulations and requirements that its competitors do not do from the private sector.

“The necessary transformation in the American Post Office is mainly a profitable network in 2025, compared to what was actually managed by Dejoy to move the phone call, there is a great separation between these two,” said Derek, founder of Cirrus Global Advisors, a logistical consultant company.

Huge losses

In his message, Digoy, former CEO of Special Logistics Services and Trump, who took office in 2020, said that he inherited an organization that witnessed losses of approximately $ 100 billion and was on the right path to a loss of another $ 200 billion.

“When I got there, I was not in mind the extent of our collapse,” said Digoy Bloomberg in December.

He never imagined staying in the agency for a long time. “I originally came here for three years, I fell in love with people,” Digoy said on Thursday. “It is a very important work.”

Some of the changes he made relatively clear, such as making sure that the trucks were full before going out on the road instead of sending a driver with a half -blank trailer. Others were larger, including unifying facilities and converting the size away from expensive air transport to ground trucks. The service also creates a series of 60 regional distribution centers.

He increased revenues by focusing more on packages and lifting rates, with the cost of 33 % stamps between January 2019 and July 2024. The service is largely funded through its revenues from operations.

Dejoy has also reduced the huge salary lists of service, as the labor force reduced 30,000 people from the fiscal year 2021, where 10,000 people are expected to leave in the voluntary early retirement program. However, despite all the changes, the service recorded a loss of $ 9.5 billion in the past year, while the delivery of the mail fell from the first degree.

Digoy sees the slowdown delivery as temporary pain. It pushes employees “to escalate and act like FEDEX and UPS.” These are “enormous organizations, and we had a lot of transition, and a lot of heavy luggage.” Come summer, “We will be a vibrator.”

In his letter, Digoy asked Congress to reform some issues that the service itself cannot. In particular, he said that the unprofible federal legislative delegations shake the agency at $ 6 billion to $ 11 billion of annual costs. He took a special goal in the postal organization committee, which oversees the prices of service and its performance. It was called “an unnecessary agency” very linked to “defective pricing models and ancient bureaucratic operations.”

“Failure failure”

The committee immediately launched, and issued a statement on Thursday that the Dejoy’s Delivery for America made the service less efficient and deteriorated, especially in rural areas. The commissioners also criticized its focus on the highly competitive Al -Hazm market, describing it as “a strategy that failed miserably at this point.”

In February, Dejoy asked the Board of Directors of the Postal Service to start searching for an alternative, a process that hopes for months instead of years. Even some of the critics of his plan praise him with a difficult task.

“Behind him has a chaos in short,” said Paul Stedler, an older colleague at the Lexington Institute, a right -wing research center in Virginia. “His plan did not succeed, but the man gave some credit. At least he took a bullet.”

Digoy himself feels more confident now. “They know what they need to do, and for this reason I feel comfortable giving the leave,” he said. “And if you receive this help that you just set with these problems, the postal service will be in good condition for a long time.”

This story was originally shown on Fortune.com

2025-03-14 17:47:00