Usps: the Future of Postal Service
USPS: The Future of Postal Service
Since December 2011, discussions have been made about different actions for the U.S. Postal Service to implement in order for the company to stay in business, provide service, and become financially stable again. Options of cutting its’ network of mail-processing centers in half have been in the mix. This will affect a substantial amount of employees who work in these centers. Businesses and citizens who rely on the postal service for communication and shipping will be affected as well. All the closures and job cuts are part of the USPS plan to cut $20 billion over the next three years to help the company stay financially stable. However, these cuts may even affect the future business of the U.S. Postal Service.
Strategic Decision
The U.S. Postal Service predicts an annual loss of $18.2 billion by 2015. The U.S. Postal Service plans to shut 223 of its 461 mail-processing facilities by February 2012. These cut backs projects about 30,000 full-time employees, which includes clerks, mail handlers, managers, administrators, and others, who will lose their jobs. 5,000 non-career positions are also expected to be cut. The service is seeking approval from congress for these cuts and to end Saturday mail delivery.
U.S. Postal Service’s Situation Mail delivery has been decreasing due to more people using the Internet for communications and to pay bills. Mail volume fell 6% in the quarter ended December 31 and may drop 14% by 2016. The service announced a loss of $3.3 billion for the quarter ended December 31. If the U.S. Postal Service is able to move forward with these closings, the service will save about $2.5 billion a year.
Most of the quarterly loss came from a U.S. law requiring to pay $5.5 billion a year for health-benefit costs of future retirees. The agency predicted that it would reach its $15 billion debt limit last year until Congress deferred the 2011 retiree health benefit payment to this year. This month, the service
Since December 2011, discussions have been made about different actions for the U.S. Postal Service to implement in order for the company to stay in business, provide service, and become financially stable again. Options of cutting its’ network of mail-processing centers in half have been in the mix. This will affect a substantial amount of employees who work in these centers. Businesses and citizens who rely on the postal service for communication and shipping will be affected as well. All the closures and job cuts are part of the USPS plan to cut $20 billion over the next three years to help the company stay financially stable. However, these cuts may even affect the future business of the U.S. Postal Service.
Strategic Decision
The U.S. Postal Service predicts an annual loss of $18.2 billion by 2015. The U.S. Postal Service plans to shut 223 of its 461 mail-processing facilities by February 2012. These cut backs projects about 30,000 full-time employees, which includes clerks, mail handlers, managers, administrators, and others, who will lose their jobs. 5,000 non-career positions are also expected to be cut. The service is seeking approval from congress for these cuts and to end Saturday mail delivery.
U.S. Postal Service’s Situation Mail delivery has been decreasing due to more people using the Internet for communications and to pay bills. Mail volume fell 6% in the quarter ended December 31 and may drop 14% by 2016. The service announced a loss of $3.3 billion for the quarter ended December 31. If the U.S. Postal Service is able to move forward with these closings, the service will save about $2.5 billion a year.
Most of the quarterly loss came from a U.S. law requiring to pay $5.5 billion a year for health-benefit costs of future retirees. The agency predicted that it would reach its $15 billion debt limit last year until Congress deferred the 2011 retiree health benefit payment to this year. This month, the service
References: http://www.federalnewsradio.com/?nid=537&sid=2759470 http://www.businessweek.com/news/2012-02-24/u-s-postal-service-to-cut-35-000-jobs-as-mail-plants-close.html http://www.reuters.com/article/2012/02/14/us-usa-usps-idUSTRE81D0M620120214