USPS want to downsize its operations dramatically with the possible closure of more than half ofits mail processing facilities eliminating 35,000 jobs to save up to $3 billion a year. First-class
mail would only be delivered on the second day after posting at the earliest.As part of yesterday’s proposals, the US postal operator is considering closing or consolidatingnearly 250 mail processing facilities which would halve its current network of nearly 500facilities and reduce its mail processing equipment by 50%. This dramatic decrease of the company’snationwide transportation network would result in 35,000 dismissals as part of therestructuring.
At the same time, the move would impact on service quality by slowing down First-Class Mail. Inconcrete terms, the mail processing network of USPS was designed to handle and deliver First-ClassMail within 1–3 days depending on the destination. The proposed changes would extend delivery timesto 2–3 days. For customers, that would mean no longer receiving their mail the day after itssubmission. This change in service standards would lead to significant infrastructure changesacross the country, USPS explained.
USPS Postmaster General Patrick Donahoe commented: “We are forced to face a new reality today.First-Class Mail supports the organisation and drives network requirements. With the dramaticdecline in mail volume and the resulting excess capacity, maintaining a vast nationalinfrastructure is no longer realistic. Since 2006, we have closed 186 facilities, removed more than1,500 pieces of mail processing equipment, decreased employee complement by more than 110,000through attrition and reduced costs by $12 billion.”
During the past five years, USPS mail volumes have declined by more than 43 billion pieces withthe downward trend continuing. First-Class Mail has dropped 25% while single piece First-Class Mail– letters bearing postage stamps – has declined 36% in the same timeframe, and nearly 50% in thepast ten years.
USPS added an Advance Notice of Rulemaking pertaining to the proposed overnight service standardchanges was submitted to the Federal Register yesterday.
“Our employees continue to do a terrific job for our customers and are among the most dedicatedworkforce anywhere. These are difficult times and our announcement does not reflect on theircommitment to service,” Donahoe added.
