Reuters reports that the US Postal Service (USPS) plans to “close or consolidate” 223 mail processing centers and eliminate as many as 35,000 jobs as it tries to cut costs and find a way to stop losing billion of dollars annually.
According to the story, “Postmaster General Patrick Donahoe has said the agency needs to reduce $20 billion in annual costs by 2015. Moving processing away from the 223 centers would reduce operating costs by $2.6 billion annually, according to the Postal Service's website.”
The story goes on: “Lawmakers have been deeply divided on whether to allow facility closures, end the prefunding payment and other measures. Some lawmakers have praised the Postal Service for ‘rightsizing’ its network, while others say the planned closings will hurt the agency's business model.”
According to the story, “Postmaster General Patrick Donahoe has said the agency needs to reduce $20 billion in annual costs by 2015. Moving processing away from the 223 centers would reduce operating costs by $2.6 billion annually, according to the Postal Service's website.”
The story goes on: “Lawmakers have been deeply divided on whether to allow facility closures, end the prefunding payment and other measures. Some lawmakers have praised the Postal Service for ‘rightsizing’ its network, while others say the planned closings will hurt the agency's business model.”
- KC's View:
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I know the USPS is making hard decisions, but I cannot help but continue to wonder if the real problem is even being addressed - the incontrovertible fact that the way people share information and messages has changed in fundamental ways, and that the traditional role and structure of the USPS have to change.
It is a real quandary. The problem for the USPS is that its competitive advantages have always been price, ubiquity and relative speed. The cuts it is making, however, are likely to reduce its speed and ubiquity ... and so while it may save money, it also may lose its relevance at an even faster rate. Which is why I think the real problems aren’t being faced.
