• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
FinanceU.S. Postal Service (USPS)

After postage price hikes and $87 billion in losses, critics of the USPS leader say latest gambit could lead to death spiral

By
David Sharp
David Sharp
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
David Sharp
David Sharp
and
The Associated Press
The Associated Press
Down Arrow Button Icon
August 22, 2024, 6:59 PM ET
Louis DeJoy
U.S. Postmaster General Louis DeJoy in 2023.Photo by Drew Angerer/Getty Images

The U.S. Postal Service wants to save $3 billion annually on changes that reflect its greater reliance on streamlined regional networks — while retaining local mail delivery times of one to three days and allowing customers to track some delivery schedules with greater precision.

Recommended Video

Election mail won’t be affected, officials said.

The proposal, announced Thursday, would adjust mail delivery times while maintaining a commitment to a maximum five-day delivery for the flagship Ground Advantage program nationwide and a maximum three-day delivery for local first-class mail.

Postmaster General Louis DeJoy said the changes to take place next year are necessary to “enable us to operate more efficiently and reliably, grow our business and give us a chance for a viable future” after an 80% drop in first-class mail since 1997 and a corresponding growth in packages. All told, the Postal Service has amassed more than $87 billion in losses from 2007 through 2020.

The details were unveiled by the Postal Service ahead of a Sept. 5 meeting in which the proposed changes will be discussed with stakeholders before they are submitted to the Postal Regulatory Commission.

Election mail and holiday shipments won’t be affected because the proposed changes would not take place until the next calendar year, officials said. Medications also should continue to be delivered at their current speed, or faster, under the proposal, officials said.

Rep. Gerry Connolly, a frequent critic of changes under DeJoy, was unimpressed by the proposal.

“Any effort to degrade service while raising prices is a recipe for a death spiral at the Postal Service,” Connoly, a Democrat from Virginia, said in a statement. “This is the second time Postmaster General DeJoy has proposed lower service standards. He might as well announce a return to delivering mail by horse and buggy.”

The proposal reflects the Postal Service’s move to overhaul its processing and transportation network with an emphasis on large regional hubs, something that is already beginning to take place in Atlanta; Richmond, Virginia; and Portland, Oregon. Changes to better utilize existing ground networks mean the Postal Service must adjust pickup and drop-off times between post offices and processing plants, a process that will increase the speed of some of the mail, officials said.

This proposal aligns with the organization’s mandate to be financially self-sufficient while continuing to deliver to every address across the nation six days a week. If adopted, 75% of first-class mail will see no change from the current service standards, and around two-thirds of mail will be delivered in three or or fewer days, the Postal Service said.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By David Sharp
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

The Bread Savings logo on a green layered background.
Personal FinanceCertificates of Deposit (CDs)
Bread Savings CD rates 2026: Standard and IRA CDs with top-tier APYs
By Joseph HostetlerApril 10, 2026
1 hour ago
Top CD rates from major banks April 10, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on April 10, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Joseph HostetlerApril 10, 2026
1 hour ago
Current price of Bitcoin for April 10, 2026
Personal FinanceCryptocurrency
Current price of Bitcoin for April 10, 2026
By Joseph HostetlerApril 10, 2026
1 hour ago
Current price of Ethereum for April 10, 2026
Personal FinanceEthereum
Current price of Ethereum for April 10, 2026
By Joseph HostetlerApril 10, 2026
1 hour ago
Current price of gold as of April 10, 2026
Personal Financegold prices
Current price of gold as of April 10, 2026
By Danny BakstApril 10, 2026
1 hour ago
Current price of oil as of April 10, 2026
Personal FinanceOil
Current price of oil as of April 10, 2026
By Joseph HostetlerApril 10, 2026
2 hours ago

Most Popular

The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
Economy
The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
By Fortune EditorsApril 9, 2026
1 day ago
A Meta employee created a dashboard so coworkers can compete to be the company's No. 1 AI token user—and Zuckerberg doesn't even rank in the top 250
AI
A Meta employee created a dashboard so coworkers can compete to be the company's No. 1 AI token user—and Zuckerberg doesn't even rank in the top 250
By Fortune EditorsApril 9, 2026
1 day ago
Gen Z doesn't want your full-time job. They want several part-time roles, and it's reshaping the entire workforce
Success
Gen Z doesn't want your full-time job. They want several part-time roles, and it's reshaping the entire workforce
By Fortune EditorsApril 9, 2026
1 day ago
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
Investing
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
By Fortune EditorsApril 9, 2026
23 hours ago
'I hate working 5 days': Zoom CEO says traditional work schedules are becoming obsolete—and predicts a 3-day workweek by 2031
Success
'I hate working 5 days': Zoom CEO says traditional work schedules are becoming obsolete—and predicts a 3-day workweek by 2031
By Fortune EditorsApril 9, 2026
24 hours ago
Current price of oil as of April 9, 2026
Personal Finance
Current price of oil as of April 9, 2026
By Fortune EditorsApril 9, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.