USPS Laying Off Thousands of Personnel; Shutting Down Offices
USPS generates its revenue from mail services; it receives no federal funding
As mail quantities continue to drop, it simply means that much less revenue to support the operating costs of the United States Postal Service, which has now posted its fourth year in a row of reduced income.
One answer to solve the problem was announced yesterday: More downsizing is on the way.
More than 7,450 personnel will be laid off, more than six district offices and almost 2,000 local offices will be closed over the next year.
Pink slips will begin going out in May, and those that have more than 25 years with USPS will offered a golden handshake of $10,000 for two years if they willingly retire.
As FedEx and United Parcel Service, who now deliver almost 60 percent of all mail, have continually eaten away at USPS’s customer base, there isn’t the quantity of mail to charge for in order to cover rising costs.
USPS was denied the ability to increase prices again, and in response, has now asked to stop all Saturday mail delivery in order to save money.
The proposed layoffs and office closures are expected to save more than $745 million each year, but that hardly puts a dent in the more than $8 billion in losses for 2010.
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