USPS Seeks $750 Million in New Cost Savings

USPS Seeks $750 Million in New Cost Savings

The U.S. Postal Service unveiled a restructuring program Thursday aimed at saving some $750 million in annual costs by closing seven administrative offices and eliminating 7,500 jobs.

The actions are the latest in a series of cutbacks the USPS has undertaken as it has accumulated billions of dollars in losses while coping with a deep decline in mail demand.

“I am confident that we have developed a strong plan that takes a key step toward a leaner and less bureaucratic structure,” said Postmaster General Patrick R. Donahoe, “one that is fair to our employees and one that will meet the future needs of our customers and the mailing industry.”

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The district offices that are closing are around the country and house only administrative operations, not sorting operations or postal facilities that serve customers, the USPS said.

The USPS, which has already adjusted to diminishing demand by reducing its workforce by 80,000 positions in three years, will cut administrative and executive positions in part by offering retirement incentives to employees who meet certain criteria.

The Postal service has accumulated more than $15 billion in losses in the last three full fiscal years and mail volume has declined nearly 16 percent in that time.

“It’s critical that we adjust our workforce to match America’s changing communications trends as mail volumes continue to decline,” Donahoe said.