Donahoe Retiring as Postmaster General in February
WASHINGTON, DC—Patrick Donahoe, the Postmaster General and CEO of the U.S. Postal Service, will end his 39-year career when he retires Feb. 1, 2015. He will be replaced by Megan Brennan, current COO of the USPS, and the first woman to hold the office.
Donahoe's retirement was announced by the USPS Board of Governors. At a public meeting of the board, Chairman Mickey Barnett called Donahoe a visionary leader who worked tirelessly to move the organization forward during one of its most difficult periods.
"Pat was the calm in the financial storm. He ignored the naysayers and went forward with his team and built a comprehensive plan for the future of the organization, made tough decisions, and executed against those decisions," said Barnett. "That's a testament to the great team he built and his own personal leadership."
Donahoe became Postmaster General during a severe financial crisis, the result of an inflexible business model that limited the organization's ability to respond to declining First-Class Mail volumes. He created an integrated financial plan and took aggressive measures to control costs, including the rationalization of mail processing, delivery and Post Office operations. These changes have significantly lowered the cost base of the Postal Service.
Commenting on the fact that the Postal Service has roughly 220,000 fewer employees today than it did in 2004, Barnett noted that "no other organization has restructured itself so dramatically and on such a large scale, and continued functioning at such a high level. And it did so without relying upon employee layoffs."
Donahoe served as a constant cheerleader for mail as a marketing channel and pushed for more integration between mail and digital communications in the mailing industry. Under his leadership, the Postal Service launched several new mailing products and enhancements including Every Door Direct Mail, which has generated more than $1 billion in new revenue. Donahoe also guided the organization's shipping and package strategies to capitalize on the rapid increase of e-commerce. In the last few years, the Postal Service has seen double-digit growth each year in its package business.