U.S. Postmaster General Louis DeJoy announced his immediate resignation on Monday, marking a significant shift in leadership for the United States Postal Service amid challenging market dynamics.
What Happened: DeJoy’s resignation comes as the USPS faces significant financial challenges, projecting a net loss of $9.5 billion for the fiscal year ending Sep. 30. The agency, which employs 640,000 workers, has seen stamp prices climb 36% since 2019, rising from 50 cents to 73 cents.
The USPS Board of Governors has engaged executive search firm Egon Zehnder to find the 76th Postmaster General. Kevin Yoder, a former Republican congressman, commented on DeJoy’s departure, according to Axios, stating, “While we’re glad to see DeJoy go, the fear is that his mismanagement will continue casting a destructive shadow.”
The departure comes amid intense discussions about the Postal Service’s future, including potential privatization efforts championed by political figures like Rep. Marjorie Taylor Greene (R-Ga.) and supported by the Department of Government Efficiency.
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Why It Matters: The postal service’s competitive landscape has undergone dramatic transformations, as revealed by Pitney Bowes Inc.‘s (NYSE:PBI) annual U.S. Parcel Shipping Index 2023.
Among the four largest carriers—USPS, Amazon.com Inc.‘s (NASDAQ:AMZN) Amazon Logistics, UPS (NYSE:UPS), and FedEx (NYSE:FDX)—only Amazon Logistics experienced year-over-year volume growth, surging 15.7%.
Amazon Logistics has made remarkable strides, nearly tripling its shipping volumes from 2 billion to 5.9 billion parcels between 2019 and 2023.
However, the company remains fourth in market share by revenue, generating $28.6 billion compared to UPS’s $68.9 billion and FedEx’s $63.2 billion.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.