The move is the start of a leadership transition for the Postal Service as it continues implementing a 10-year Delivering for America transformation plan put in place under DeJoy.
He recalled arriving at the agency in the early days of the COVID-19 pandemic, when the Postal Service was at risk of running out of cash within 60 days and had accumulated two decades of losses totaling $90 billion.
“It is important to me that we timely and methodically bring forth a new postmaster general who understands our mission and can successfully lead our spirited organization,” he stated.
Amber McReynolds, chairwoman of the board of governors, praised DeJoy’s efforts to modernize the Postal Service and improve its financial stability during his tenure.
“Louis is a fighter, and he has fought hard for the women and men of the Postal Service and to ensure that the American people have reliable and affordable service for years to come,” McReynolds said in a statement.
DeJoy cited the progress made under his leadership, including a financial turnaround that saw the Postal Service achieve $1 billion in controllable income and a $140 million in generally accepted accounting principles income in the most recent quarter.
He also noted cost-cutting measures, including a $2 billion reduction in transportation costs and $1.5 billion in mail processing cost reductions. Additionally, revenue growth initiatives are projected to bring in $5 billion, he said in his letter.
During his tenure, the Postal Service also launched new package shipping products and invested more than $18 billion in infrastructure modernization, including new processing, logistics, and delivery network designs. He acknowledged that some of these changes disrupted services but said they are necessary to ensure long-term sustainability.
DeJoy pointed to ongoing challenges, including industry resistance to change and a business model that had been broken for more than two decades. He stressed the need for continued transformation to align costs with service expectations.
“The simplest and most obvious ideas and solutions receive illogical and irrational scrutiny from those that have no responsibility for ensuring the financial viability of the Postal Service,” he wrote in his letter.
“This, combined with industry lobbying, has held the organization back in the past from making the necessary changes. I have fought against this, and as a result I believe that I can fairly say that my tenure has been one of high expectations and vigorous action.”
The board of governors will now begin the process of selecting DeJoy’s successor. DeJoy has pledged to assist in a smooth transition, ensuring that the next postmaster general is well-positioned to carry forward the Postal Service’s modernization efforts.
The Postal Service, an independent federal entity, operates with a self-financing mandate and delivers mail and packages to 169 million addresses six and often seven days a week.
The Delivering for America plan implemented under DeJoy aims to achieve financial sustainability and service improvements across all mail and shipping categories.
