us postal service

Postmaster General Louis DeJoy Resigns Amid USPS Financial Challenges

Published: March 25, 2025

Leadership Change at USPS

Louis DeJoy, who has served as the U.S. Postmaster General since June 2020, has resigned effective immediately. Deputy Postmaster General Doug Tulino will assume the role on an interim basis as the Postal Service Board of Governors initiates the search for a permanent successor.

Financial Struggles and Reform Efforts

During his tenure, DeJoy implemented several cost-cutting measures aimed at addressing the Postal Service’s persistent financial losses, which have totaled over $100 billion since 2007. In November 2024, USPS reported an annual loss of nearly $10 billion for the fiscal year ending September 30.

Proposed Workforce Reductions

In March 2025, DeJoy announced plans to eliminate 10,000 jobs within the next 30 days as part of broader efforts to streamline operations and reduce expenses. These proposed cuts have raised concerns among postal workers and lawmakers about the potential impact on service quality and delivery times.

Potential Privatization and Structural Changes

The Trump administration has suggested significant structural changes to USPS, including potential privatization or merging with other government departments. These proposals have been met with opposition from various lawmakers who emphasize the Postal Service’s constitutional foundation and its critical role in delivering essential services nationwide.

Service Standard Adjustments

In February 2025, USPS announced refined service standards for certain market-dominant services, including First-Class Mail and Periodicals. These adjustments are projected to result in significant cost savings over the next decade but have also sparked discussions about potential impacts on delivery times, particularly in rural areas.

Outlook and Future Leadership

As the Postal Service navigates these challenges, the appointment of a new Postmaster General will be pivotal in determining the organization’s direction. The Board of Governors, in collaboration with executive search firm Egon Zehnder, is conducting a comprehensive search for a leader capable of steering USPS toward financial stability while maintaining its commitment to reliable service.

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