Postal Service To Close 140 Facilities

More Closures May Be On The Way

Unites States Postal ServiceThe United States Postal Service (USPS), in an effort to stem a projected $14 billion net loss in fiscal 2012, announced that it is moving forward with its plan to close some of its facilities. The first phase of the USPS's consolidation plan will result in up to 140 closures through February of 2013. Then, after reevaluating its finances, a second and final phase of 89 consolidations would be scheduled to begin in February of 2014.

"We revised our network consolidation timeline to provide a longer planning schedule for our customers, employees and other stakeholders, and to enable a more methodical and measured implementation," said Patrick R. Donahoe, postmaster general and CEO of the USPS. "We simply do not have the mail volumes to justify the size and capacity of our current mail processing network. To return to long-term profitability and financial stability while keeping mail affordable, we must match our network to the anticipated workload. This plan meets our cost reduction goals, ensures seamless and excellent service performance throughout the implementation period, and provides adequate time for our customers to adapt to our network changes."

The USPS will begin the closures this summer, which mostly involves transferring mail-processing operations from smaller to larger facilities. Due to the volume of high-priority mail predicted for the election and holiday mailing seasons, no consolidating activities will be conducted from September through December of 2012. "We will be conducting consolidation activities this summer at only 48 locations," said Megan Brennan, COO of the USPS. "As a result, nearly all consolidating activities in 2012 will occur in August and then will resume again the early part of next year."

The announced closures will reduce the size of the USPS workforce by approximately 13,000 employees and, when fully implemented, will generate cost reductions of approximately $1.2 billion annually. Click here to see a list of the 140 facilities slated for closure by early next year.