Postal Service starts reorganizing to cut costs
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.
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| January 7, 2011; 2:00 PM ET
Categories: Postal Service
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