USPS to Consolidate 200-Plus Processing Facilities

WASHINGTON, DC—The U.S. Postal Service has completed its study of 264 Area Mail Processing facilities and has found 223 of them to be feasible for consolidation, all or in part. The move would reportedly put 35,000 Postal Service jobs at stake. The network consolidation would reduce operating costs by $2.6 billion annually and result in a net savings of $2.1 billion.

The study was done to help the Postal Service reconcile its workforce with current and projected volume levels. Its overall goal is to reduce operating costs by $20 billion by 2015 and return the organization to profitability.

Of the 264 processing facilities studied for possible consolidation, six are on hold for further internal study and 35 will remain open at this time. Due to regulatory and labor-agreement requirements, the Postal Service is beginning a lengthy notification process now in order to be in a position to begin implementing its national mail processing realignment during the summer and fall of 2012. The changes are contingent upon a final decision to change its service standards for First-Class Mail.

In keeping with the terms of an agreement the Postal Service made with Congress last December, no consolidation of any postal facility will occur prior to May 15, to give Congress and the Obama Administration the opportunity to enact an alternative plan.