(Reuters) -U.S. President-elect Donald Trump has expressed a eager curiosity in privatizing the U.S. Postal Service in current weeks, the Washington Submit reported on Saturday, citing three folks with data of the matter.
The U.S. Submit Workplace, which has misplaced greater than $100 billion since 2007, reported a internet lack of $9.5 billion for its fiscal yr ending Sept. 30, a $3-billion greater loss than final yr, largely resulting from a year-over-year improve in non-cash staff’ compensation expense.
When advised 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 choose 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 modifications to USPS, the report stated, citing two different folks acquainted with the matter.
The U.S. Postal Service and the Trump transition crew didn’t instantly reply to requests for touch upon the report.
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:), which makes use of USPS for “last-mile” supply between Amazon’s achievement facilities and prospects. It may additionally damage small companies and rural customers who use the Postal Service, as it’s the solely service that can ship to distant corners of the nation.
Amazon just 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 advised Reuters his transition crew is contemplating canceling the service’s contracts to affect its supply fleet.
In line with sources, the crew is reviewing the way it can unwind the service’s multibillion-dollar contracts, together with with Oshkosh (NYSE:) and Ford (NYSE:), for tens of hundreds of battery-driven supply vehicles and charging stations.
In 2020, Congress licensed the Treasury Division to lend the Postal Service up to $10 billion as a part of a $2.3 trillion coronavirus stimulus package deal, which Trump threatened to dam.