US Postmaster General Louis DeJoy announced on Tuesday that he had asked the United States Postal Service (USPS) governing board to begin the process of searching for his successor. DeJoy, who became USPS chief in 2020, did not specify when he would depart.
His timing is opportune for the Postal Service, which has lost money for decades. In November, DeJoy warned that if the USPS doesn’t cut back, it will either get a government bailout or eventually the demise of the agency. The agency has lost more than $100 billion since 2007, which has placed it in a vulnerable financial situation.
His decision to resign occurs weeks after the return of President Donald Trump to office. Throughout his time in office, DeJoy has been under fire for restructuring plans and operational revisions in the Postal Service that have been praised as well as criticized.
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USPS’s financial struggles and the 10-year plan
In an attempt to fix its perennial financial woes, the USPS introduced a 10-year restructuring strategy in 2021 aimed at wiping out $160 billion worth of projected losses over the coming 10 years. While the agency has realized some progress, it still projects to lose roughly $80 billion in the same period. USPS has set aside additional cost reductions and operating adjustments to bridge the remaining financial gap.
Among the most important strategies of the restructuring plan is the consolidation of mail processing networks, a step that has been criticized by lawmakers worried about possible delays and job losses. Yet DeJoy has been adamant in his conviction that these reforms are needed to make the Postal Service sustainable in the long term.
The other major challenge facing the USPS is declining first-class mail volumes. The 3.6% year-over-year decline in first-class mail, which stands at 44.3 billion pieces annually, is an 80% decline from 1997, with mail volumes currently being the lowest since 1968.
As an attempt to balance revenues, USPS has also fluctuated postage prices. While the agency announced in September that it would not increase the cost of a stamp in January—its first two-year period without an increase—it did raise the cost of a first-class mail stamp from 68 cents to 73 cents last July. In addition, average mailing service product prices increased by 7.8%.
The future of USPS and DeJoy’s legacy
With DeJoy on his way out, his legacy remains a topic of debate. Some credit him for taking bold action in addressing the agency’s long-standing financial struggles, while others criticize his restructuring efforts for their impact on service efficiency and employees’ job security.
One of the notable efforts during his leadership has been the push for the USPS to electrify its fleet with additional electric vehicles. The effort gained traction following the approval by Congress of $3 billion in funding to support the transition of the Postal Service to cleaner energy solutions. DeJoy defended the move last December, highlighting its importance in reducing operational costs and environmental impact.
Another highlight of DeJoy’s time in office was the handling of mail-in ballots in last November’s presidential election. USPS was able to deliver millions of ballots across the country, highlighting its vital role in US democracy despite operational and financial woes.
As the USPS Board of Governors searches for DeJoy’s replacement, the incoming postmaster general will be left with a list of challenges, ranging from curbing continuous losses to ensuring the agency remains a reliable service provider. With first-class mail volumes continuing to decline and electronic communication becoming the norm, the future of the Postal Service remains in doubt. It remains to be seen if DeJoy’s successor will see through his proposals for restructuring or go in another direction.
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