Postmaster General Louis DeJoy’s comments at the recent Board of Governors Meeting addressed the continuing losses at the US Postal Service. The USPS finished fiscal year 2023 with a $6.5 billion-dollar net loss despite forecasting breaking even.
De Joy said, “Our efforts to grow revenue and reduce labor and transportation costs were simply not enough to overcome our costs to stabilize our organization, the historical inflationary environment we encountered, and our inability to obtain the CSRS [Civil Service Retirement System] reform we sought, none of which were accounted for in our forecasts.”
He said the forecast had included relief of $3 billion in CSRS obligations and did not include $2.6 billion in costs created by inflation. Absent these two factors, the break-even point would have been within reach.
The Delivering for America Plan remains central to the USPS path forward. The goal, as stated by DeJoy, is to “Reduce costs by improving our operational precision through the deployment of modern-day logistics strategies and suitable operational assets to compete for a growing share of the growing package market.”
Read the transcript of DeJoy’s remarks here.