USPS Network Changes Presentation

USPS released the following information today

Faced with a massive nationwide infrastructure that is no longer financially sustainable, USPS today proposed sweeping changes designed to save the organization up to $3 billion a year by cutting its network of processing facilities by over half and adjusting service standards.

Proposals under consideration include studying nearly 250 processing facilities for possible consolidation or closure, reducing mail processing equipment by as much as 50 percent, dramatically decreasing the nationwide transportation network, adjusting the workforce size by as many as 35,000 positions, and revising service standards for First-Class Mail.

“We are forced to face a new reality today,” said PMG Pat Donahoe. “First-Class Mail supports the organization and drives network requirements. With the dramatic decline in mail volume and the resulting excess capacity, maintaining a vast national infrastructure is no longer realistic.”

Mail volume has declined by more than 43 billion pieces in the past 5 years and is continuing to decline. First-Class Mail has dropped 25 percent and single piece First-Class Mail — letters bearing postage stamps — has declined 36 percent in the same timeframe, and nearly 50 percent in the past ten years. The decline has created substantial excess capacity within the postal processing network.

The mail processing network itself was constructed to process and deliver First-Class Mail within a 1-3 day window depending on where the mail is sent and delivered. With the proposed change, the new service standard would become 2-3 days, meaning that on average, customers would no longer receive mail the day after it was mailed. If implemented, the change in service standards would allow for significant infrastructure changes to be made across the nation.

“Our employees continue to do a terrific job for our customers and are among the most dedicated workforce anywhere,” said Donahoe. “These are difficult times and our announcement today does not reflect on their commitment to service.”

An “Advance Notice of Rulemaking” pertaining to the proposed overnight service standard changes was submitted to the “Federal Register” earlier today. The Postal Service intends to file with the Postal Regulatory Commission this fall.

USPS Network Changes Presentation

USPS Fact Sheet on Facilities

5 thoughts on “USPS Network Changes Presentation

  1. Hey ask Dohahoe if his gardener decided to come once every 2 weeks instead of every week and wanted the same money would he keep him or look elsewhere?The post office has just introduced a new business axiom:

  2. ..”the new service standard would become 2 to 3 days, on average, customers would no longer receive mail the day after it was mailed.” this is not correct
    information or worded poorly . if this plan is implemented NO MAIL WOULD BE DELIVERED
    OVERNIGHT. no “on average” about it, no first-class letter mail would be delivered overnight. donahoe’s idea to save the post office is to make mail delivery slower! i guess donahoe thinks that the lousier service you give the
    customer the more business these degraded customers give you! i’ve watched
    for several years as postal management makes decision after decision that screws
    over the customer and reduces service. then they wonder why revenues are declining. they blame the internet for everything when the reality is they need to look in the mirror if they want to see exactly what the problem is with the postal service! incompetent management!

  3. If R.I.F.s do take place personnel are entitled to a severance package figured from their total years of service. In the past it was,1 week’s pay for every year of service, for the first 10 years of service. Two weeks pay for every year of service thereafter ,with an additional benefit if you are over 40 years of age. This is why the service offers early outs to employees, because it is cheaper!

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