(Reuters) – US President-elect Donald Trump has in recent weeks shown great interest in privatizing the US Postal Service, the Washington Post reported on Saturday, citing three people familiar with the matter.
The U.S. Postal Service, which has lost more than $100 billion since 2007, reported a net loss of $9.5 billion in its fiscal year that ended September 30, an increase of $3 billion from last year, largely due to increased… On an annual basis in informal services. -Workers' compensation expenses in cash.
When Trump learned of the agency's annual losses, Trump said the government should not support the organization, according to the Washington Post.
Trump, who will take office on January 20, discussed his desire to privatize the Postal Service with Howard Lutnick, his pick for Commerce Secretary, at Mar-a-Lago, the report said.
The people who will work at the government's efficiency department, led by Elon Musk and Vivek Ramaswamy, have also had preliminary talks about major changes at the USPS, the report said, citing two other people familiar with the matter.
A USPS spokesperson said that over the past three years, the company has reduced operations by 45 million work hours and reduced transportation spending by $2 billion.
The agency is also seeking regulatory approval to modernize its mail processing and transportation network to bring it into line with modern practices, which would save $3.6 billion to $3.7 billion annually, the spokesperson added.
“No policy should be considered official unless it comes directly from President Trump or his authorized spokespeople,” said Carolyn Leavitt, a spokeswoman for Trump's transition team.
The Washington Post said any attempt to privatize the Postal Service could disrupt the U.S. e-commerce industry, including Amazon (NASDAQ:), which uses USPS for “last-mile” deliveries between Amazon fulfillment centers and customers. It could also hurt small businesses and rural consumers who use the Postal Service, as it is the only carrier that will deliver to remote areas of the country.
Amazon recently said it donated $1 million to Trump's inaugural fund and will stream his inauguration on its Prime Video service.
Trump has had a tense relationship with the Postal Service. Sources told Reuters that his transition team is considering canceling service contracts to supply electricity to the delivery fleet.
According to sources, the team is reviewing how to cancel multi-billion-dollar service contracts, including with Oshkosh (NYSE:) and Ford (NYSE:), for tens of thousands of battery-powered delivery trucks and charging stations.
In 2020, Congress authorized the Treasury Department to lend the Postal Service up to $10 billion as part of a $2.3 trillion coronavirus stimulus package, which Trump threatened to block.
