U.S. Postmaster General Louis DeJoy Announces Plans for Successor Amid USPS Financial Reforms
U.S. Postmaster General Louis DeJoy announced on Tuesday that he has asked the U.S. Postal Service (USPS) Board of Governors to begin the process of identifying his successor. DeJoy, who has led the agency since June 2020, made the decision as part of his efforts to ensure a smooth transition and continued progress on the agency’s 10-year Delivering for America reform plan. The plan, launched in 2021, aims to address the Postal Service’s financial challenges, including projected losses of $160 billion over the next decade. USPS has since revised its projections to $80 billion in losses and is implementing further cost-cutting measures to close the gap.
DeJoy’s tenure has been marked by significant financial struggles, with USPS reporting over $100 billion in losses since 2007. In November, he warned that without continued cost reductions, the agency could face either a government bailout or the potential collapse of the organization. Despite these challenges, USPS recently reported a rare net profit for the first quarter of fiscal 2025, which DeJoy described as a sign of progress. However, the agency still anticipates ending the fiscal year with a $6.9 billion net loss.
DeJoy has faced criticism from Congress and other stakeholders over his cost-cutting measures, including plans to consolidate processing networks and reduce transportation and mail processing costs. He has also defended USPS’s decision to invest in electric vehicles, a move supported by a $3 billion congressional allocation. Meanwhile, first-class mail volume continues to decline, dropping 3.6% year-over-year to 44.3 billion pieces, its lowest level since 1968.
In a statement, DeJoy emphasized the need for a successor committed to completing the reforms outlined in the Delivering for America plan. He also highlighted the Postal Service’s efforts to grow its package delivery business, which competes with private-sector companies, as a key revenue driver. Amber McReynolds, chairwoman of the USPS Board of Governors, praised DeJoy for his leadership and efforts to modernize the agency, expressing confidence that the progress made under his tenure would continue.
DeJoy’s announcement comes as USPS prepares for further changes, including early retirement offers to eligible employees and adjustments to on-time mail delivery metrics. The Postal Regulatory Commission has warned that some of these changes could slow mail delivery for a significant portion of the nation, achieving only “meager savings” in the long term. Despite these challenges, DeJoy remains optimistic about the Postal Service’s future, stating that the agency is on a path to fulfilling its mission of financial self-sufficiency.
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