Trump's Budget Cuts Impact USPS Operations and Mail Deliveries

Thousands of letter and package carrier positions at both the United States Postal Service (USPS) and United Parcel Service (UPS) could be at risk this year as both companies work to trim expenses and consolidate operations.

This is as part of the ongoing economic ripples of US President Donald Trump's tariffs and technological advancements, according to a report by the Los Angeles Times.

This year, UPS's CEO revealed the company's intention to downsize 20,000 workers, which is approximately 4% of the entire global workforce at the company. Additionally, 73 distribution centers are scheduled to close by June, reports Xinhua News Agency.

These closures are part of a broader initiative to modernize UPS's distribution network, including bringing automation to 400 of its facilities—either entirely or partially. The company also reported at the start of this year that it had reached an agreement with Amazon, its largest customer, to cut operations related to business by over 50% by mid-2026.

Also, former Postmaster General Louis DeJoy announced that USPS would eliminate 10,000 positions and reduce its budget with the help of the Department of Government Efficiency. The Los Angeles Times article quoted that the USPS has lost nearly $100 billion and will also lose an additional $200 billion over the course of a few years. In 2024, USPS employed 533,724 workers.

While UPS asserts its employee reductions and automation efforts in its distribution centers won't be visible to the public, USPS will likely undergo more noticeable adjustments.

The USPS is implementing the changes in two phases: Phase One began April 1, and Phase Two occurs on July 1.