The US Postal Service announce First Phase of Facility Consolidations to start this August

Processing & Distributuion Center (P&DC) - Credit USPS

(Best Syndication News) - The US Postal Service announced that they would move ahead with a modified plan to consolidate 461 mail-processing locations over a 9-month period. The consolidation is expected to reduce $1.2 billion in costs.

During the first-phase of the consolidation, there will be 140 consolidations that will go on through February of 2013. The consolidating will commence start in August with 48 locations that mostly handle transferring mail processing from smaller to larger locations. Then there is no planned consolidation between September and December 2012 because they are anticipating larger mail volume because of the elections and high priority mail volume during the holidays. The consolidations will start again in the early part of 2013. The Postal Service will start notifying around 5,000 employees starting next week if they are affected from the consolidations that will happen this summer.

The second phase will occur if the Postal Service financial circumstances continue as they have been. During the second phase, 89 consolidations will begin starting in February 2014. The second phase could be canceled if the Postal Service financial situation turns around.

"We revised our network consolidation time line to provide a longer planning schedule for our customers, employees and other stakeholders, and to enable a more methodical and measured implementation," said Patrick R. Donahoe, Postmaster General and Chief Executive Officer of the Postal Service.

Donahoe also said that the Postal Service does not process enough mail volume to keep the current mail-processing network. The plan to reduce processing locations will help to reduce expenses, keep mail costs down, and help them return to long-term profitability.

The first phase of downsizing of the Postal Service locations will reduce workforce by around 13,000 employees. They estimate that the consolidations will save around $1.2 billion annually. After the second phase is completed in late 2014, the Postal Service estimates that their workforce will be reduced by around 28,000 employees and have an annual savings of around $2.1 billion.

By: Dave Reddy

ref: USPS

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