The U.S. Postal Service wants to study roughly 1,000 post offices for possible closure – the latest cost-cutting step from an agency that is scrambling to deal with a projected $7 billion deficit this year and larger losses in 2010.
The agency started its review earlier this year with approximately 3,200 post offices, and decided about 1,000 of them are “candidates for further review.” Postal managers say they will consider several factors in deciding whether to close those facilities: mail volume, proximity to other post offices, and the potential savings in labor and utility costs.
Post offices only generate about 71 percent of the Postal Service’s revenues each year; the rest comes through alternative channels, particularly the Postal Service’s Web site.
“Each year more and more postal transactions are now accomplished online,” said Jordan Small, the Postal Service’s acting vice president for network operations. “We consider this a success… [but we need] to determine if there is, indeed, excess capacity in the network.”
The post office review is one recommendation from the Government Accountability Office, which added the Postal Service to its high-risk list last week. GAO analysts say they are deeply concerned about the agency’s finances. Postal officials say they will probably post another $7 billion deficit next year – even after slashing $8 billion in costs.
“The Postal Service urgently needs to restructure,” said Phillip Herr, the GAO’s director of physical infrastructure issues. “With regards to delivery operations, the Postal Service has more than 350,000 carriers, and delivery services represent the largest cost segment.”
July 31st, 2009 at 6:42 am
Of course delivery services represent the largest cost segment….we move the mail, its what we do…. it is labor intensive!! maybe its time for the po to get back to basics. I know I have 25 years invested and hate to see the current leadership lead us to ruin!!! help!!!!
July 31st, 2009 at 3:50 pm
The best way to preserve the USPS is to cut delivery to three days a week! Â Deliver one-half the neighborhoods Mon-Wed-Fri and the other half Tue-Thu-Sat. Â Businesses would need Mon-Fri delivery. Â This would save approx $14B! Â Jobs could be eliminated through early outs and attrition.
August 5th, 2009 at 8:06 am
The PO doesn’t need to restructure – it needs to rid itself of inept corrupt management that can award itself bonuses for incompetence at a whim. Has Potter stated that the bonuses are no more? It needs to become the Postal SERVICE again. Recently you reported that costs had forced the PO to stop delivering mail to residents in the boonies that could only be reached by plane. Excuse me – aren’t ALL Americans guaranteed mail delivery at the same rate? Where are the Constitutionalists? Where is the outrage?The PO is not supposed to make a profit. Get these wannabe CEO’s out of OUR SERVICE. The PO is cutting back on management positions. Ha! How about asking for a report on just how many of these buffoons actually were terminated from Postal emplyment. I only see the rats scurrying to new cheese outlets. Tour two clerk positions have been abolished and the employees shafted to hours befitting the morons that devised this deal. How about asking for an update on the vast amounts of money being saved – since these employees now also get tour differential. Mail volume is down? We certainly don’t need to make our SERVICE better, less confusing, and more efficient. NO! Lets close the doors on the shop! That will get our numbers back up. New flat rate priority packaging? Priority is the FUTURE of the PO – says management! Too freaking bad we’re going to stop delivering it on Saturdays! What GIANT MEGA-BRAINS. Time to CLEAN HOUSE!!!!!!!!!