Posted March 11, 2018 09:53:47 The USPS has been quietly implementing its long-term plan to cut spending, which would make it easier for the USPS to pay for a $50 billion cut to its workforce.
That plan is aimed at cutting costs by consolidating operations and reducing costs, according to an internal memo obtained by Polygon.
That means the USPS will consolidate its two major postal facilities in Pennsylvania and New York.
The new USPS consolidation will eliminate about 1,200 jobs, which is roughly the size of New York City’s workforce.
The consolidation is being planned in response to the USPS’s $3.6 billion annual deficit, which has been growing since 2014.
The USPS is currently facing a $30 billion annual budget deficit.
The memo said the USPS is also considering cutting the number of employees it employs and reducing staffing levels.
“As we have stated, the USPS has experienced a dramatic and unprecedented growth in staffing levels and costs,” the memo said.
“We have seen the savings associated with these changes to be more than offset by the costs of doing business.”
The memo also said the new USPS plans to reduce the number and size of USPS vehicles it sells and will also focus on reducing the number, type and number of USPS mail delivery services it provides.
“The Postal Service continues to see tremendous savings through the consolidation, including reductions in the number our commercial mailers, mailers and couriers, and the number for our courier services,” the new memo said, citing a $25 million savings over the next five years.
“Additionally, we expect to see savings in our business practices and costs.
These are our long-standing and most important operating strategies that are supported by our management, including our Chief Financial Officer, who has been leading the USPS in a number of important areas, including cost reduction and profitability.”
The USPS will not disclose the savings or the reasons behind the consolidation plan, but the agency has said the consolidation will save the USPS billions of dollars over the long run.
The announcement comes just days after President Donald Trump told Congress that USPS employees should “be treated better and be paid better” than federal employees.
“I will never be happy until you are treated like everybody else,” Trump said during a speech in Philadelphia on Tuesday.
“And then you know, we’re going to start to pay a lot of people a lot less.”
Trump’s comments followed a scathing report by the Department of Labor’s Office of Inspector General, which found that the USPS had systematically violated federal labor law.
In an email to employees on March 3, USPS Chief Financial and General Counsel John O’Donnell wrote, “We believe our actions, if implemented as expected, will achieve positive outcomes for our customers and employees.”
The department also noted that USPS will continue to reduce costs by “expanding the number or quality of mail that we ship and will ensure our operations continue to be aligned with the changing needs of our customers.”
The consolidation plan is part of a broader restructuring effort that began in 2017.
The Postal Service has been consolidating the delivery and delivery services of about 40 different types of mail since 2014, according the Postal Regulatory Commission.
The changes have included consolidating delivery and handling, shipping and handling and sorting.
“These new changes will result in the Postal Service reducing its size and consolidation,” O’Neill wrote.
“In doing so, we will also reduce our overall workforce and decrease the volume of our mail and the ability of our employees to deliver it.”
USPS said the cost savings will come from consolidating its two main operations.
The two facilities will consolidate under one management unit, the Postal Inspection Service.
The agency will also consolidate the services of the Commercial Mail Service, which includes delivery and sorting, as well as delivery and processing.
The Consolidated Operations Office will be headed by a new executive.
The Office of the Chief Financial Office, which manages the Postal Office, will continue operating under a separate management unit.
The reorganization will save $1.2 billion in fiscal 2018, which the USPS said it will spend on capital projects.
USPS also said it is reducing the size and cost of its commercial mail service.
The service will also be more flexible, allowing for USPS employees to perform tasks that they are not able to perform in the current Postal Service structure.
The goal of consolidating USPS mail and services is to streamline delivery, reduce costs and improve customer service, the agency said.