Trump considers privatizing US Postal Service, Washington Submit stories

(Reuters) -U.S. President-elect Donald Trump has in latest weeks expressed a eager curiosity in privatizing the U.S. Postal Service, the Washington Submit reported on Saturday, citing three folks with data of the matter.

The U.S. Postal Service, which has misplaced greater than $100 billion since 2007, reported a internet lack of $9.5 billion for its fiscal 12 months ending Sept. 30, $3 billion greater than final 12 months, largely because of a year-over-year improve in non-cash staff’ compensation expense.

When informed of the company’s annual losses, Trump stated the federal government mustn’t subsidize the group, in response to the Washington Submit.

Trump, who takes workplace on Jan. 20, has mentioned his want to denationalise the Postal Service with Howard Lutnick, his decide for commerce secretary, at Mar-a-Lago, the report stated.

Individuals who will work on the Division of Authorities Effectivity, led by Elon Musk and Vivek Ramaswamy, have additionally had preliminary conversations about main adjustments to USPS, the report stated, citing two different folks acquainted with the matter.

A USPS spokesperson stated that over the past three years, the corporate has decreased its operations by 45 million work hours, and lower transportation spending by $2 billion.

The company can be looking for regulatory approval to modernize its mail processing and transportation community to align with fashionable practices, which is able to save between $3.6-$3.7 billion yearly, the spokesperson added.

“No coverage must be deemed official except it comes from President Trump or his licensed spokespeople immediately,” stated Karoline Leavitt, a spokeswoman for the Trump transition group.

Any try at privatizing the Postal Service may disrupt the e-commerce business within the U.S., the Washington Submit stated, together with Amazon (NASDAQ:AMZN), which makes use of USPS for “last-mile” supply between Amazon’s success facilities and clients. It may additionally damage small companies and rural customers who use the Postal Service, as it’s the solely provider that can ship to distant corners of the nation.

Amazon lately stated it was donating $1 million to Trump’s inaugural fund and can air his inauguration on its Prime Video service.

Trump has had a tense relationship with the Postal Service. Sources informed Reuters his transition group is contemplating canceling the service’s contracts to affect its supply fleet.

Based on sources, the group is reviewing the way it can unwind the service’s multibillion-dollar contracts, together with with Oshkosh (NYSE:OSK) and Ford (NYSE:F), for tens of hundreds of battery-driven supply vans and charging stations.

In 2020, Congress licensed the Treasury Division to lend the Postal Service as much as $10 billion as a part of a $2.3 trillion coronavirus stimulus package deal, which Trump threatened to dam.