The U.S. Postal Service may resort to early retirements and buyout offers as a way to slash its staff by 66,000 employees this year and another 51,000 next year. Combined, the planned cuts over the next two years amount to more than one-fifth the agency’s workforce.
Office of Personnel Management Director John Berry said Wednesday that Postmaster General Patrick Donahoe alerted him a week earlier that USPS could offer both early retirement and buyout incentives to encourage employees to leave.
Chief Financial Officer Joe Corbett on Thursday outlined for reporters the Postal Service’s ambitious plans to pare down its workforce in the next five years by 155,000 employees — ultimately reaching an end strength of 402,000 by the end of fiscal 2016.
Normal attrition removes roughly 30,000 employees a year, so it appears likely the agency will have to resort to either early retirement offers or buyouts or both to reach its downsizing targets. The agency’s labor contracts generally prohibit layoffs.
Corbett told reporters in a conference call that early retirement incentives are under consideration, but he did not discuss the possibility of buyouts.
full story via Federal Times.