Postal service declares 2,000 closings in 2011

To cut costs, the USPS has announced that it will close 2,000 facilities this year. Because of a law that restricts the Postal service from post office closings for budgetary reasons, the locations targeted in 2011 are considered branches, or stations instead. For years, Postal service losses have totaled billions of dollars and cost cutting has failed to stymie the red ink. They’ve been hanging on by a thread and might possibly be looking into short term personal loans to keep afloat.

Postal service having a hard time right now

With nearly 500 postal closings under way, the USPS has set a goal to close a total of 2,000 this year. The USPS is required by law to provide an equal measure of service to each corner of the U.S. About $8.5 billion was lost in the 2010 fiscal year though. This is bad news. It was asked for an increase postage rates by the Postal Regulatory Commission. This was rejected though. The commission felt that poor management and waste was the reason for the Postal service having a problem although the request said it was due to the recession and Internet competition. Just since 1999, there has been a cut of about 1/3 of Postal service employees. When it comes to cost cutting, one suggestion is for smaller postal locations to be closed. Another is that Saturday delivery will be cut.

Ways increases could be made take place

In 2011, it is expected that 2,000 postal locations could be cut. Another 16,000 are under evaluation from the Postal Service. There are 50 percent of U.S. post offices that have deficits right now. There’s a law that allows post office closings only if there is an expired lease or maintenance problems to deal with instead of because they’re losing money which the agency is trying to get changed be Congress. Losing the postage strengthen battle did not stop the Postal service from trying other things. It’s trying to convince politicians that 32,000 locations are too many. There was not any kind of United Parcel Service, Fed Ex or e-mail. This was when all of these buildings were created.

End of the postal era

The amount of mail is what the Postal service needs more of. This is the only way survival will happen. In recent years the art of letter writing has perished, individuals pay their bills online and companies spend a fraction of what they did just a few years ago to send out junk mail. Small towns and politicians really do not want the buildings to close down which is the only thing left to do. The employee benefits are the first thing suggested to go. Then the USPS can start thinking about shutting down the mail system.

Articles cited

Wall Street Journal

online.wsj.com/article/SB10001424052748704881304576094000352599050.html

CNN Money

money.cnn.com/2011/01/24/news/economy/postal_service_close/?npt=NP1

USA Today

content.usatoday.com/communities/ondeadline/post/2011/01/us-postal-service-set-to-begin-closing-2000-post-offices/1