WASHINGTON, D.C. – The United States Postal Service announced Monday that it is moving forward with a cost-cutting plan that will largely eliminate the chance of first-class mail receiving next-day delivery.
The decision to reduce first-class mail delivery standards for the first time in 40 years will allow the postal service to close approximately half of its 487 mail processing centers. Current standards call for first class mail to be delivered within one to three days within the continental United States; the new standards call for two to three day delivery. The closings could begin as soon as March.
“The U.S. Postal Service must reduce its operating costs by $20 billion by 2015 in order to return to profitability,” said David Williams, vice president, Network Operations. “The proposed changes to service standards will allow for significant consolidation of the postal network in terms of facilities, processing equipment, vehicles and employee workforce and will generate projected net annual savings of approximately $2.1 billion.”
The postal service has been plagued by declining mail volumes and declining revenue for years. It relies entirely on the sale of postage, products and services to fund its operations, without receiving any tax dollars for its operating expenses.
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