Home Members Tools Credit Cards
   

  • Postal Service Must Face a "New Reality"

    As consumers depend more on electronic communication, mail volume has plummeted by more than 43 billion pieces in the past five years - and continues to fall.

    The U.S. Postal Service said on Thursday that they plan to make serious changes to their infrastructure in order to cut costs and stay financially sustainable. Though it’s considered a federal enterprise, USPS receives no federal tax dollars and depends entirely on the sale of postage, products, and services to fund its operating costs.

    “We are forced to face a new reality today,” said Postmaster General Patrick Donahoe.

    To save up to $3 billion per year, USPS proposed cutting its network of processing facilities by over half and adjusting service standards. They are considering 250 processing facilities for consolidation or closure, cutting mail processing equipment by up to half, dramatically decreasing the nationwide transportation network, cutting the workforce by as many as 35,000 jobs, and revising service standards for First-Class Mail.

    “First-Class Mail supports the organization and drives network requirements. With the dramatic decline in mail volume and the resulting excess capacity, maintaining a vast national infrastructure is no longer realistic. Since 2006, we have closed 186 facilities, removed more than 1,500 pieces of mail processing equipment, decreased employee complement by more than 110,000 through attrition and reduced costs by $12 billion.”

    USPS said that the changes would mean that customers will no longer receive mail the day after it was sent. The current mail processing network typically has a piece of mail delivered within a 1-3 window, depending on the location from where it was mailed. With the proposed changes, the new processing standard would be 2-3 days.

    “Our employees continue to do a terrific job for our customers and are among the most dedicated workforce anywhere. These are difficult times and our announcement today does not reflect on their commitment to service,” added Donahoe.


    Source:
    U.S. Postal Service
    Comments 1 Comment
    1. Wanderer's Avatar
      Wanderer -
      While the economists and government types keep telling us it is a "recession"... one wonders if it is more? In my many years of life, I don't remember us not bouncing back with jobs (employment) in America. We need to focus on employing our own people and quit focusing on giving the elite 2% more because they will help us out (not happened yet). What I see is a major erosion of the middle class. Eliminate all our safety nets and push everyone to the quote lower financial class. Yes, I am editorializing. Our Congress, all 535 of them need to get cast out into the sea a drift as they choose to take care of only themselves! A major shift is taking place in our world (I don't like it but, it is) and we will have to right size government but, let's NOT loose the things we really need. Toss the pork barrel over Niagra Falls! We need employment for the Gen X, Y and Milleniums as they are our tomorrow (I am a baby boomer). Yes, the US Postal Service needs to reflect the times and yes, we need to realign it to do just that... but, let's not throw the baby out with the bath water!
  • Disclaimer

    Information in these articles is brought to you by Finance Globe. Banks, issuers, credit card, and other companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles and is further subject to our terms and conditions.
  • Recent Headlines and Articles

    ChrisB

    3 Things to Look for in a Checking Account

    As you search for a bank that can help you open a checking account, many questions will come to mind. While it is easy to believe that one bank and account is the same as the rest, nothing could be further from the truth.... read more
    ChrisB December 19th, 2014, 10:18 AM
    ChrisB

    Second Semester Spending: How College Students can Save

    Once the holiday break comes to an end, college students all over the country will return to campus and hit the books once again. Not only does this mean more studying for most students, but it also means... read more
    ChrisB December 18th, 2014, 09:20 AM
    ChrisB

    Is 2015 the Time for a Career Change? Financial Impact

    With the new year a few weeks away, many people are beginning to set a variety of personal and career related goals. Is 2015 the time for you to make a career change? If this is on... read more
    ChrisB December 16th, 2014, 09:30 AM
    ChrisB

    Cheap Ways to Thank Employees this Holiday Season

    Regardless of your position, if you have employees who work for you it is important to say thanks during the holiday season. For some, this is easier said than done.

    While you want... read more
    ChrisB December 15th, 2014, 10:25 AM
    ChrisB

    Tips for Booking a Holiday Vacation

    While some people prefer to spend the holidays around home, others enjoy taking a vacation during this time of the year.

    If you are in the process of booking a last minute... read more
    ChrisB December 11th, 2014, 10:07 AM
    ChrisB

    Easy Ways to Save on your Electric Bill

    Do you cringe when your electric bill arrives in the mailbox or via email? Are you ready to make changes that will allow you to save money on this expense in the near future? If you... read more
    ChrisB December 10th, 2014, 09:51 AM
    ChrisB

    How to Save Money on Holiday Groceries

    With the holiday season in full swing, there is a good chance you will have a household of guests at some point in the near future. As you know, this means you will be spending quite a bit of... read more
    ChrisB December 8th, 2014, 10:47 AM
  • Recent Article Comments

    SAR1954

    Is 2015 the Time for a Career Change? Financial Impact

    This is a great article and exactly where I am at right now. I am starting a new job right before... Go to last post

    SAR1954 December 18th, 2014 09:26 AM

 

 

 

Credit Cards | Finance Social Network | Credit Card Reviews | Markets
About Us | FG on the Web | Sitemap | Privacy | Terms | Contact


Copyright © 2014 Finance Globe. All rights reserved.