"USPS at a Crossroads: Postmaster General Louis DeJoy Seeks Successor Amid Financial Turmoil"

The US Postmaster General, Louis DeJoy, announced on Tuesday that he has requested the US Postal Service (USPS) governing board to begin the process of identifying his successor. DeJoy, who has led the agency since 2020, did not specify a timeline for his departure, but his announcement follows weeks after Donald Trump took office.

Financial Challenges and Cost-Cutting Measures

In November, DeJoy warned that USPS, which has accumulated over $100 billion in losses since 2007, must continue aggressive cost-cutting measures to avoid a “government bailout or the end of this great organization as we know it.” Under his leadership, the postal service has been implementing a 10-year restructuring plan, announced in 2021, designed to eliminate $160 billion in projected losses over the next decade. However, even with these efforts, USPS now projects $80 billion in losses during that period and plans further cuts to close the financial gap.

Controversial Policy Decisions

DeJoy has faced criticism in Congress regarding USPS’s ongoing processing network consolidation plans. In December, he defended the agency’s decision to expand its electric vehicle fleet after Congress allocated $3 billion for USPS operations. His tenure also saw USPS play a crucial role in overseeing the delivery of tens of millions of ballots for last November’s presidential election.

Declining Mail Volume and Pricing Strategies

The postal service continues to grapple with declining first-class mail volumes, which fell 3.6% year-over-year to 44.3 billion pieces. First-class mail use has plummeted by 80% since 1997 and is at its lowest level since 1968. In an effort to manage costs and revenue, USPS had been increasing stamp prices, with the last hike in July raising the cost of a first-class mail stamp to 73 cents from 68 cents. However, in September, USPS announced that it would not increase stamp prices in January for the first time in two years.

Future of USPS Leadership

As USPS searches for DeJoy’s replacement, the agency faces mounting pressure to modernize operations while maintaining service affordability and reliability. The next postmaster general will inherit the responsibility of steering the organization through financial turbulence, technological advancements, and changing consumer habits.