USPS Hires Restructuring Firm to Combat Year-Long Cash Crisis

Key Details The U.S. Postal Service has engaged consulting firm Alvarez & Marsal to develop a comprehensive restructuring plan addressing severe financial pressures. Postmaster General David Steiner announced the move on March 4, warning that the agency could face insolvency within 12 months without immediate action. Why It Matters Steiner emphasized that all options remain on the table, including potential service cuts and workforce reductions. He stressed the agency cannot depend on external assistance and must act independently to ensure operational continuity. The blunt assessment underscores mounting urgency at USPS headquarters. Background The Postal Service has struggled with annual losses for years despite ongoing cost-reduction efforts. Steiner assumed leadership last year following Louis DeJoy's departure under pressure from President Trump. Trump has publicly discussed privatizing USPS or transferring it to the Department of Commerce. Industry Impact USPS ranks fourth on Transport Topics' Top 50 list of largest global freight companies, making its financial health relevant to the broader shipping and logistics sector.