The U.S. Postal Service is slashing its administrative ranks by 15 percent andÂ cutting 1,400 mail processing supervisors and management positions at 400 facilities across the country, the economically imperiled organization announced today.
In addition, the Postal Service is closing six of its 80 district offices, a move that will eliminate another 500 positions. USPS is also offering early retirement opportunity to 150,000 postal employees nationwide.
The actions are expected to save the Postal Service more than $100 million a year.
Affected employees will have four months to find work elsewhere in the Postal Service, at an equal or lower pay grade, USPS spokeswoman Sue Brennan said. The employees will be offered “saved grade” for two years followed by indefinite “saved salary,” meaning they won’t be given a pay cut, but also will not receive pay increases.
Brennan said there are a number of vacancies nationally that affected employees can fill. Those employees also have early retirement options, she said.
The Postal Service has been struggling to stay afloat in recent years due to declining mail volumes and growing competition. First class, single pieceÂ mail volume has declined to levels not seen since 1964. Conditions have been made worse by the national financial crisis.Â
Previous cost cutting actions taken over the last year were simply not enough to make up for the shortfall. In the last year, USPS has:
- Cut 50 million work hours.
- Halted construction on new facilities.
- Adjusted letter carrier routes.Â
- Froze salaries for executives.
- Instituted a hiring freeze.
- Sold underused facilities.
- Cut operating hours at some facilities.
- Consolidated mail processing centers.
In today’s news release, the Postal Service said the “bold actions” were taken because there are “no signs of economic recovery in sight.”
The National Association of Postal Supervisors, which represents the affected employees has this document breaking down the job losses. I was told that none of the union’s officers were available for comment today.