CNN
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Louis DeJoy resigned from his role as head of the US Postal Service on Monday, leaving the independent government agency at a time when it faces calls for privatization and scrutiny from the Trump administration.
In a statement released by USPS, DeJoy said while the 250-year old-service had made “beneficial change to what had been an adrift and moribund organization,” more work was necessary “to sustain our positive trajectory.”
“It has been one of the pleasures of my life and a crowning achievement of my career to have been associated with this cherished institution,” he added, noting that Deputy Postmaster General Doug Tulino will take the reins until the USPS Board of Governors names a permanent successor. A statement from USPS said there is no “established timeline” for the announcement of DeJoy’s replacement.
DeJoy, who was appointed postmaster general as the agency struggled to survive financial woes from the Covid-19 pandemic, announced plans to step down in February.
The former businessman and GOP donor led the agency through the coronavirus pandemic and two high-turnout presidential elections that saw surges in mail-in ballots. He has sought to modernize the service, unveiling a 10-year plan in 2021 to stem ongoing losses.
Some of his plans drew criticism, with many claiming that his efforts to consolidate deliveries ultimately slowed them down.
He also advocated for raising the postage rates, saying in 2022 that Americans should get used to “uncomfortable” rate increases to help get the agency, which is self-funded, on better financial footing. A First-Class domestic postage stamp for a standard sized envelope is currently $0.73, up from $0.55, when DeJoy arrived at the agency.
While the USPS is currently four years into a reorganization initiative designed to cut costs and improve efficiency, President Donald Trump has said he wants to see more changes. He has floated plans to give Secretary of Commerce Howard Lutnick oversight of the agency, which is currently overseen by its board of governors, not a Cabinet secretary.
“Well, we want to have a post office that works well and doesn’t lose massive amounts of money, and we’re thinking about doing that, and it will be a form of a merger,” Trump said at Lutnick’s swearing-in ceremony on February 21, days after DeJoy said he would resign. “It’ll remain the Postal Service, and I think it’ll operate a lot better than it has been over the years.”
The move could be a first step towards privatization – a change tech billionaire and White House adviser Elon Musk called for earlier this month.
Days later, DeJoy told Congress that he had signed an agreement to let Musk’s Department of Government Efficiency work with the Postal Service. The agency, DeJoy said, will focus on improving the management of USPS retirement assets and the Workers’ Compensation Program, which he argued have been “mismanaged.”
Roughly 30,000 employees have been cut from the agency since 2021, and there are plans to slash another 10,000 people through a voluntary early retirement program, he added. The agency currently employs approximately 635,000 workers across the US.
This story has been updated with additional details.
CNN’s Chris Isidore and Gabe Cohen contributed to this report.
