Facing a financial crisis, the United States Postal Service announced that 223 processing facilities have been "found feasible for consolidation, all or in part." Of the 264 processing facilities studied, only 35 are set to remain open.
The postal service said the changes could help it reduce its operating costs by $20 billion by 2015, making the service profitable once more.
In a statement, the USPS explained the financial picture:
"The Postal Service is in the midst of a financial crisis due to the combined effects of the economic recession, increased use of electronic communications, and an obligation to prefund retiree health benefits. First-Class Mail volume has deteriorated, leading to significant revenue declines, and the obligation to prefund these retiree health benefits on an accelerated basis remains unresolved. To date, legislative proposals to address the financial crisis remain pending, leaving the Postal Service and the mailing industry it supports in an increasingly precarious position."
Comment by:
hatchcar (#001074) Entered on: 2012-02-24 11:29:41
Powell, don't forget that if you wanted to mail a letter from let's say, Central Avenue to 59th Street and Camelback, or 59th Avenue and Camelback, it will take 2 days, not overnight. Let's see, reduce the service you are giving, and pay more for it. Sure sounds like a sound government business plan to me. Like, I've stated before, it's time to end the monopoly!!
Comment by:
Powell Gammill (#013871) Entered on: 2012-02-24 10:18:26
Oh, and by the way the postage rate is increasing to 50 cents an ounce. Have a good day!
