USPS Seeks to Cut 120,000 Jobs

WASHINGTON, DC—The U.S. Postal Service (USPS) delivered a somber reminder of its dire financial circumstances with the revelation that it is considering cutting as many as 120,000 jobs from its 580,000-plus full-time employee ranks.

According to The Associated Press, the USPS also wants to pull its employees and pensioners out of the retirement and health benefits plans covering federal workers in order to set up its own benefits system. Having already maxed out its borrowing limit and enduring another year of $8 billion in losses, USPS has already indicated it will not be able to make a $5.5 billion payment to cover future health care costs, which is due Sept. 30.

The USPS is the only federal agency required to make such a prepayment; however, due to governmental accounting, eliminating the payments would make the federal budget deficit appear $5.5 billion larger. It has sought Congressional assistance for the past few years in an effort to eliminate or alleviate the prefunding requirement.

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  • Jack

    And of course the immediate comment I heard on talk radio was that the USPS workforce is 25% veterans and we cannot downsize due to the impact on them. This came from one of our lawmakers that indicated the money should be spent by the Fed to keep these jobs. To me it is just another example of how the government cannot stop the spending binge that they are on. The USPS needs to take steps to reduce its costs as the market place is moving away from mail as a primary means of communication.

    This is no different than the buggy whip manufacturers situation as automobiles began their ascension. We cannot afford to subsidize industries that do not compete in today’s changing marketplace.