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Posted at 2:00 PM ET, 01/ 7/2011

Postal Service starts reorganizing to cut costs

By Ed O'Keefe

The U.S. Postal Service thinned its top ranks Friday as it prepares a series of anticipated changes to cut costs and boost revenues.

Postmaster General Patrick R. Donahoe announced the elimination of a senior vice president position and realigned responsibilities related to domestic sales, retail operations and customer and industry affairs. Some senior vice presidents will be reassigned to lower vice president slots, according to a spokeswoman.

The Postal Service lost $8.5 billion in the fiscal year that ended in September as mail volume and revenues plummeted farther than previous years.

The changes announced Friday are part of Donahoe's plans to cut $750 million in administrative costs. They mirror suggestions made by postal watchdogs in September.

Donahoe also announced plans to close a regional office located in Memphis, Tenn. that will result in the departure or reassignment of 119 workers, the spokeswoman said.

Donahoe assumed the top postal job in early December and will be formally sworn in next Friday.

Leave your thoughts in the comments section below

By Ed O'Keefe  | January 7, 2011; 2:00 PM ET
Categories:  Postal Service  
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That's a good start. Glad to see some action. USPS also needs to be sensitive to customer feedback regarding postal employees and back down the unions trying to protect incompetent and rude staff and managers.
If they cut out one day of delivery, make it a weekday like Tuesday or Wednesday so as not to "pile up" on Mondays.

Posted by: pjohn2 | January 7, 2011 6:17 PM | Report abuse

Postal services falls under the heading of "things governments do", like having a Navy. Even partial privatization was a pretty dumb idea, as is seeing USPS advertising anywhere. Does any other nation on the planet advertise its postal service?
We need to stop pretending about the Post Office, bring it fully back into the government's purview, and endeavor to make it the well-run government agency that it should be.

Posted by: OldUncleTom | January 7, 2011 6:30 PM | Report abuse

Kill it. It is redundant. It has been replaced by the telephone, years ago, the internet and the pakage delivery companies. It only serves the junk mail industry and its employees.

Posted by: jdonner2 | January 7, 2011 6:43 PM | Report abuse

"The Postal Service lost $8.5 billion in the fiscal year that ended..."

Let put in perspective folks ... $8.5 Billion ... two weeks in Iraq.

Raise postage rates $0.15 to cover the costs .. but OH! wait It's a first amendment right for business to receive subsidized postal rates.

We mailed 50 Christmas card this year @ $0.42 each ... sure won't if we have to mail them @ $10.00 each with FedEx.

Is this a war on Christmas cards?

Posted by: knjincvc | January 7, 2011 8:52 PM | Report abuse

Get rid of those scummy unions

Posted by: nomobarry | January 8, 2011 4:48 PM | Report abuse

I'm no fan of the us vs them mentality however if anyone outside of the postal service really understood how some managers treats the workers they would understand why we have unions.
As the saying goes: If there wasn't a need for a union there wouldn't be one. For whatever reason "nomobarry" fails to explain the term "scummy unions".

Posted by: mailman5218 | January 9, 2011 7:55 PM | Report abuse

RIF is the answer. As the military has often done following wars, the reduction in force is a massive exit of officers and senior enlisted types. The PO is so far from profitability that they need major surgery, not bandaids.
They also need to convert their gasoline guzzling fleets to use natural gas, ASAP.

Posted by: bookman2011 | January 10, 2011 2:38 PM | Report abuse

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