U.S. Postal Service to cut 7,500 Jobs & shutdown 2,000 Post Offices

The U.S. Postal Service is set to cut 7,500 jobs, close seven district offices and 2,000 post offices as it fails to keep up with competition from FedEx and United Parcel Service.

With less mail being sent by post, the Government-controlled Postal Service is trying to reduce the $8.5billion net loss reported for 2010 – its fourth year in a row.

Postmaster General Patrick Donahoe said: ‘It’s critical that we adjust our work force to match America’s changing communications trends as mail volumes continue to decline.’

The redundancies will take place over the next two years, with the first round expected to be completed by the end of May.

The company said it was offering voluntary early retirement of $20,000 paid over two years to employees over 50-years-old with 20 years of service, or any age with 25 years of service.

Bosses hope the job cuts and office closings would save about $750million per year.

Joanne Veto, a spokeswoman for the Postal Service, said: We know that we cannot look the same 10 years from now. The mail volume isn’t there. We have to adjust to keep up with the mail and customer needs.’

She said the Postal Service would close 2,000 post offices around the United States over the next 12 months, while eliminating the 7,500 jobs, but did not say which part of the country the cuts would come from.

As of the end of January, the agency employed 583,000 people.

The Postal Service, which delivers about 40 per cent of the world’s mail, does not receive tax revenue. It relies on the sale of products and services to fund its operations.

The United States started organising mail delivery in 1775 under the stewardship of Benjamin Franklin and the Second Continental Congress.

In 1792 the Post Office Department was created and almost 200 years later, in 1971, it was reorganized at The U.S. Postal Service.

The Postal Service lost a bid last summer to raise rates on first-class mail beyond the pace of inflation. It has also asked Congress for permission to cut Saturday mail delivery.

The Government Accountability Office said in a report in February that the Postal Service had been slow to modernise, and it recommended look into alternative delivery methods, such as digital mail or allowing customers to pick up parcels from machines 24 hours a day.

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