Tuesday, December 6, 2011

US Postal Service to Eliminate 28,000 Jobs


The U.S. Postal Service is attempting major restructuring for the sake of survival. “U.S. Postal Service seeks to end next-day mail” by Emily Stephenson of Reuters.com reports that the agency has proposed to “close more than half its 461 processing facilities”, eliminate next day delivery, and extend expected delivery of First Class mail.

The closure of the processing facilities would result in 28,000 jobs lost. The proposals are part of an effort to “find $20 billion in annual savings by 2015.” This large savings would come from reducing the company’s network. David Williams, USPS VP for network operations stated:

“The fact of the matter is our network is too big. We’ve got more capacity in our network than we can afford… More importantly, we’ve got to set our network up so that when volume continues to drop, our network is nimble and flexible enough to respond to those volume losses”

It is projected that the USPS will lose $14 billion this year and is hoping that the government will approve the proposals. According to the article “USPS has said it will run out of money by September of next year without a congressional overhaul of its operations.”

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