the staff of the Ridgewood Blog
Ridgewood NJ, major changes are set to reshape the future of the U.S. Postal Service (USPS) as the agency launches a sweeping cost-cutting initiative this month. The overhaul could mean slower mail delivery, thousands of job cuts, and even a potential merger with a federal department — a move that could end the Postal Service’s long-standing independence.
USPS Faces Financial Crisis: $16.4 Billion in Projected Losses
The USPS, which delivers to 163 million addresses and employs over 530,000 workers, reported a $9.5 billion loss in 2024 and is expected to lose another $6.9 billion in 2025, according to Government Executive. First-class mail volume has dropped 80% since 1997, reaching levels not seen since 1968, largely due to the rise of email and digital communication.
In response, USPS has launched a 10-year plan to save $36 billion through operational changes, including:
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Job reductions through early retirements
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Slower delivery times in some areas
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Restructuring postal operations, especially in rural communities
10,000 USPS Jobs to Be Cut in 2025
As part of the first phase of the plan, USPS announced in January a voluntary early retirement program for up to 10,000 employees. Workers who opt in will receive a $15,000 buyout, paid in two installments. This buyout is separate from other federal workforce reduction efforts and is being coordinated with the American Postal Workers Union (APWU).
Controversial Proposal to Merge USPS with the Department of Commerce
In a move that has sparked concern among consumer advocates, President Donald Trump has proposed merging the Postal Service with the Department of Commerce, effectively ending its independent federal agency status.
“It’ll be a form of a merger, but it’ll remain the Postal Service,” Trump said in a recent interview. “And I think it’ll operate a lot better than it has been over the years. It’s been just a tremendous loser for this country.”
Critics warn that the merger could raise delivery costs and hurt service in rural and underserved areas, while supporters say it may streamline operations and increase efficiency.
Elon Musk, Government Efficiency, and USPS Privatization?
Adding to the shakeup, former Postmaster General Louis DeJoy revealed in March that he signed a deal with the newly created Department of Government Efficiency, led by Elon Musk. Musk, a vocal advocate of privatizing USPS, has hinted at implementing tech-driven solutions to reduce costs and increase delivery speed.
Meanwhile, Commerce Secretary Howard Lutnick has suggested reassigning USPS workers to support other federal functions — including conducting the U.S. Census and assisting with Social Security services.
What This Means for USPS Customers and Employees
While the USPS says the changes are necessary for long-term survival, critics argue the new direction could reduce service quality, threaten jobs, and undermine the Postal Service’s role as a trusted, independent public institution.
The second phase of the cost-cutting plan is expected to roll out later in 2025, with more details to come.
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They are putting themselves out of business
Due to late and missing mail people flock to online bill payments
They keep raising the price of a first class stamp but still give junk mailers a break.
Interestingly if there is a fleet that should be electric or natural gas, the USPS ignored the green new deal.
9.5bn loss in 2024
Privatize!
$50 billion in financial aid and government subsidies in 2022, exempt from over $2 billion in annual taxes, operates at a loss, the list goes on and on. Another area in desperate need of overhaul.
Gee, i’ll miss getting mail addressed to my neighbors and people in other towns…..
my regular carrier is great
unfortunately whenever there is a subsitute temp my mail gets misdelivered ( and since my neighbors dont bother to empty their mailbox on a regular basis it sits somewhere)
Get the free ‘informed delivery’ so you know what coming every day in your mail, and if it doesn’t arrive… click the ‘report’ button
AND call the post office.
Long standing independence??? You’ve gotta be kidding.
The Post Office DEPARTMENT was cabinet level unit 1971, just after the postal strike, when it was made the quasi governmental postal service with collective bargaining rights on wages and other things.
The government and politicians should not be running something that is supposed to run a profit.
“Government Takeover” ?
Isn’t it part of the government?
It can easily be eliminated. But I’ll be happy to compromise to a 2X weekly delivery, provided there is a plan to eliminate it. Its time is done.
Post office is in the US constitution. Can’t be privatized or eliminated.
Can’t EASILY be privatized or eliminated.