America’s general postmaster knew that sooner or later Doge would call the US mail service.
So Louis Dejoy decided that Doge could work with him.
The nation’s top mail man this week signed an agreement with Elon Muskt Department of Government Efficiency to work together on reforms for the extensive service that delivers letters and packages from Tropen Guam to the wild Alaska game. Instead of waiting for the Doge crew to dictate changes, Dejoy tries to shape it.
“This was a short and healthy conversation”, which found a few days ago, said Dejoy in an interview. “We’re going to the races.”
Read more:Post -Service Header signer from Doge -agreement to promote reforms
He also wants to consolidate a number of reforms that he has been pursuing for four years. The venerable post office unnoticed by most Americans tried to reinvent themselves and reduce the costs and at the same time switch to a modern hub-and-coisting system, similar to the competitors United Parcel Service Inc. and Fedex Corp.
At least for customers, DeJOYS reform plan “Delivering for America” only achieved limited results. Many Americans are now waiting for a long time to get their mail. But in A letter Dejoy has already reduced the costs – and the employees – at the congress leaders on Thursday, which disclose the Dog deal and said the service was for better days.
“The postal service was once exposed to the immediate threat from bankruptcy, for which tax money would be required for rescue packages,” he wrote. “Instead, the postal service finally has an unprecedented time of growth and innovation.”
Dejoy already announced that he intends to step down from his office, although the 10-year edition for America-Plan is not yet in the middle. President Donald Trump has thought about taking the service privately orFold it together into the Ministry of Commercewhile Muschus also called for privatization. In contrast, DeJoy’s letter asked to ensure that a version of his own reforms will continue after his departure.
At least two employees of Doge and GSA work under DeJOYS supervision and are looking for potential savings and efficiency increases, as a person is familiar with the details of the plan. “It’s not an army,” said Dejoy. “I still lead the organization.”
The reform of the almost 250-year-old postal service, which employs 635,000 employees, is a complex task due to his mandate. In contrast to his private competitors, the USPS isnecessaryEven in the most remote places to reach the Americans, no matter how sparse is populated. In fact, UPS and FEDEX pay the service to cover deliveries in many rural areas in which they would otherwise have difficulty working profitably. And although it is an independent government agency, not directly under the control of the White House, you confront regulations and legal requirements that your private competitors do not do.
“The degree of transformation, which is basically a profitable network in the US post office in 2025, and what Dejoy was actually able to move the dial, there is an enormous separation between these two,” said Derek Stoming, founder of Cirrus Global Advisors, a logistical consulting company.
Big losses
In his letter, Dejoy, a former logistics manager of the private sector and Trump, who took up his office in 2020, said an organization that had experiencedAlmost 100 billion US dollars of lossesAnd was on the right track to lose another $ 200 billion.
“When I arrived there, I didn’t take into account how broken we were,” said Dejoy to Bloomberg in December.
He has never imagined staying in the agency for so long. “I originally came here for three years and fell in love with people,” said Dejoy on Thursday. “It is very, very important work.”
Some of the changes he implemented were relatively simple, e.g. B. ensure that the trucks were full before they went on a route instead of sending out a driver with a half -empty trailer. Others were larger, including consolidation systems and the relocation volume of expensive air traffic to soil car. The service also builds a number of 60 regional sales centers.
He increased sales by concentrating more on packages and increasing the interest rates with theCosts for a stampBetween January 2019 and July 2024, they climb 33%. The service is largely financed by its income from business.
DeJOY also cut the immense salary statement of the service and reduced its workforce by 30,000 people from the 2021 financial year. Another 10,000 will probably leave voluntarilyEarly pension program. And yet the service for all changes last year recorded a loss of $ 9.5 billion, while the punctual delivery of the first-class post decreased.
Dejoy sees slower deliveries than temporary growing pain. He urges the employees to “increase and behave like Fedex and UPS”. These are “impressive organizations and we had a lot of transition, a lot of heavy luggage,” he said. Come in summer: “We’ll rock.”
In his letter, Dejoy asked the congress to fix some problems that the service itself cannot. In particular, he said that non -financed federal legislators saddle the agency with USD 6 billion to $ 11 billion in annual costs. And he aimed a special goal on the post regulation commission, which monitors the tariffs and performance of the service. He called it an “unnecessary agency” that was assigned to “defective price models and old bureaucratic processes” for decades.
“Failed miserably”
The commission fired immediately and outputa statementThursday that Dejoy’s Program made the service less efficient for the America program and worsened its performance, especially in rural areas. The commissioners have also concentrated on the high -competitive package market and called it “a strategy that failed miserably up to this point”.
In February Dejoy asked the Post -Gouveneurs’ Council of the Swiss PostLooking for his replacementA process of which he hopes it will not take years. Even some critics of his plan praise him as a difficult task.
“In short, his successor has a chaos,” saidPaul SteidlerA senior fellow at the Lexington Institute, a central thought factory in Virginia. “His plan didn’t work, but some recognition for the guy. At least he made a shot. “
Dejoy himself feels more confident about kicking now. “You know what you have to do and that’s why I feel comfortable to give your vacation,” he said. “And when I get this help that I have just presented with these problems, the postal service will be in great form for a long time.”
This story was originally on Fortune.com
Source link
