USPS Proceeding with Mail Processing Consolidations

WASHINGTON, DC—The U.S. Postal Service (USPS) announced plans to move ahead with a modified plan to consolidate its network of 461 mail processing locations in phases. The first phase of activities will result in up to 140 consolidations through February of 2013. Barring Congressional activity, a second and final phase of 89 consolidations is currently 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 Donahoe, postmaster general and CEO of the Postal Service.

“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,” he added. “Our current 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 consolidating operations this summer—which mostly involve 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. Approximately 5,000 employees will begin receiving notifications next week related to consolidating and other efficiency-enhancing activities to be conducted this summer.

“We will be conducting consolidation activities this summer at only 48 locations,” said Megan Brennan, COO of the Postal Service. “As a result, nearly all consolidating activities in 2012 will occur in August and then will resume again the early part of next year.”

These consolidating activities will reduce the size of the Postal Service workforce by approximately 13,000 employees and, when fully implemented, will generate cost reductions of approximately $1.2 billion annually.

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