Postmaster General Louis DeJoy said Thursday that USPS plans to accelerate efforts to cut costs and boost revenue.
“While we are growing revenue and cutting costs at an aggressive rate, it is still not enough to overcome the historic trajectory, the substantial inflation, our difficulties in making changes and the cost of doing so,” DeJoy told the USPS Board of Governors.
USPS is cutting costs by reducing total work hours, reducing truck trips between mail processing plants and post offices, and transporting less mail through air freight contractors.
USPS Governor Dan Tangherlini, a former administrator of the General Services Administration, said the agency’s financial position “continues to degrade.”
“Operating costs are not falling below our improving revenue, and most importantly, service has not improved at the same rate as price increases,” Tangherlini said.
“While the board remains committed to the imperatives expressed in the Delivering for America plan to rebuild USPS, infrastructure and systems, I’m concerned about implementation, performance and our ability to maintain customer support for these hard and necessary changes,” he added.