US Postal Service Head DeJoy Resigns: USPS Privatization Fears Rise

Published March 25, 2025 by Kenneth John
Business - General News
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The United States Postal Service (USPS) is in the midst of a dramatic leadership transition. US Postal Service chief DeJoy steps down after almost five years as head of an agency that is financially struggling and embroiled in political controversies regarding its future. His departure, scheduled for March 24, 2025, follows talk of potential privatization and budget slashing that have fueled controversy nationwide.

Louis DeJoy had A Controversial Tenure

Louis DeJoy became postmaster general in 2020 during President Donald Trump’s first term. He was the first person in nearly two decades to take the role without prior career experience in USPS. DeJoy, a logistics business owner and Republican donor, faced heavy scrutiny throughout his tenure. His leadership coincided with the COVID-19 pandemic, an increase in mail-in ballots during elections, and major financial challenges for USPS.

Under DeJoy, USPS implemented several cost-cutting measures, some of which led to delivery delays and service reductions. His latest plan, announced earlier this month, included cutting 10,000 jobs and billions of dollars from the agency’s budget. The plan was developed in coordination with the Department of Government Efficiency (DOGE), a department overseen by Elon Musk under the Trump administration.

Most postal employees protested these reductions, contending that they would impair mail services, particularly in rural communities. Within the last week, demonstrations took place as mail carriers complained about possible service interruptions and layoffs.

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Leadership Transition after Louis DeJoy Resigned

With US Postal Service chief DeJoy resigns, the acting leadership burden rests on Deputy Postmaster General Doug Tulino. He will be acting until the Postal Service Board of Governors names a permanent successor. The board has engaged international search firm Egon Zehnder to guide the selection process. No deadline for naming the next postmaster general has been established.

DeJoy was optimistic that USPS could maintain its modernization efforts. “I believe firmly that the organization is well placed and able to continue and fully execute the numerous strategies and initiatives that make up our transformation,” he said.

Future of USPS: Privatization on the Horizon?

The most pressing question after DeJoy’s resignation is what the future holds for USPS. US Postal Service chief DeJoy resigns at a moment when President Trump is weighing putting the agency under Commerce Department control. USPS is now an independent organization, but it has been experiencing financial difficulties because of the decreasing use of first-class mail.

The agency gets the majority of its $78 billion annual income from customer charges. Congress gives a small subsidy—just $50 million in fiscal year 2023—to subsidize reduced-rate mailings. USPS also has approximately 640,000 employees handling mail, medication, election ballots, and packages throughout the country, including in rural communities.

Supporters of privatization state that USPS has to be overhauled so that it no longer makes a loss. Critics are concerned, however, that privatization will result in higher prices for customers and decreased availability of services to low-income neighborhoods.

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Democratic Representative Gerald Connolly 

also expressed strong opposition to the plan. He cautioned that moving USPS operations to DOGE would jeopardize its service and open the door to privatization, which he feels would harm American citizens.

What’s Next for USPS?

With US Postal Service head DeJoy quits, the spotlight now is on the Postal Service Board of Governors and their selection for the future postmaster general. The National Association of Letter Carriers, a prominent postal workers’ union, has urged a chief who brings creative thinking and prizes the agency’s constitutional mandate.

The future of the Postal Service is at stake, and electing someone with creativity and understanding for our constitutionally required service is critical,” union President Brian L. Renfroe said.

Conclusion 

USPS is still a necessary institution in the lives of millions of Americans. As power transitions, conflicts about funding, operation, and possible privatization are sure to endure. If the agency becomes even more a public service or goes into more privatized management remains to be seen, with its future directions for years ahead decided. 

Meanwhile, US Postal Service director DeJoy resigns, his legacy one of change, debate, and intrigue.

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Kenneth John

Kenneth is a finance journalist at TNj.com, specializing in market trends, economic analysis, and investment strategies, providing insightful updates and expert perspectives on global financial news.