BURSTThe U.S. Postal Service, plagued by "economic headwinds," reported a $3.3 billion net loss in the most recent quarter — nearly double its loss during the same period last year, which officials attributed largely to federal worker benefits and other unexpected mandated costs.
"As we mark 250 years of service to the nation, our organization continues to face economic headwinds. We are working diligently to control costs, increase revenues, and transform and modernize our infrastructure," Douglas Tulino, who was acting postmaster general during the reporting period, said in a statement Friday.
The Postal Service Board of Governors announced Friday that former Waste Management CEO David Steiner has been picked to helm the embattled agency beginning in July after completing required ethics and security clearance vetting.
The Postal Service's travel costs for the latest reporting period that spanned from March through May decreased, but the financial findings released Friday showed significant hikes from noncash workers’ compensation adjustments, employee compensation and benefits and other operating expenses.
"The financial results for the second quarter reflected significant challenges that were out of our control," Postal Service Chief Financial Officer Luke Grossmann said in a statement. "We did, however, see continued growth in package revenues, which along with lower transportation expenses and work hour reductions, favorably impacted our business."
The service has set out on a 10-year strategic efficiency plan that led to $116 million in savings on transportation costs and 10 million fewer work hours in the quarter, the agency reported Friday.
"While full success of the plan still requires further administrative and legislative actions, the plan delivers the framework for us to better innovate to grow revenue, work more efficiently, and achieve financial sustainability to fulfill our universal service mission over an integrated network to deliver both mail and packages," Grossmann said.
President Trump in February threatened to take over the Postal Service — which has been independent since the 1970s — possibly through putting it under the Commerce Department.
"We want to have a post office that works well and doesn’t lose massive amounts of money,” Trump told reporters during the swearing-in ceremony for Commerce Secretary Howard Lutnick. “It’s been just a tremendous loser for this country, tremendous amounts of money that they’ve lost."
The Department of Government Efficiency (DOGE) began reviewing the service's operations earlier this year with proposals to scale back the agency's workforce and some operations.
Critics have worried about the impact on rural communities and a possible shift toward privatization.
Rep. Gerry Connolly (D-Va.), the ranking member of the Oversight and Government Reform Committee, expressed concern in a letter to Postal Service leaders in March about the Trump administration "undermining" the independent agency with DOGE's influence.
"This capitulation will have catastrophic consequences for all Americans – especially those in rural and hard to reach areas – who rely on the Postal Service every day to deliver mail, medications, ballots, and more," he wrote.