As part of the ongoing redesign of the Postal Service, PMG Pat Donahoe yesterday announced USPS will close seven of its 74 district offices. This reflects continuing alignments within the organization to achieve core business strategies and, when fully implemented, will help realize approximately $750 million of annual cost savings .
The district offices scheduled for closure — Columbus, OH, (Eastern Area); Southeast Michigan, in Troy, MI, and Northern Illinois in Carol Stream, IL (Great Lakes Area); Southeast New England in Providence, RI (Northeast Area); South Georgia in Macon, GA, and Albuquerque in Albuquerque, NM (Southwest Area); and Big Sky in Billings, MT (Western Area) — house only administrative functions that will be assumed by surrounding district offices. The closures will not affect customer service, mail delivery, Post Office operations or ZIP codes.
“I am confident we have developed a strong plan that takes a key step toward a leaner and less bureaucratic structure. One that is fair to our employees and one that will meet the future needs of our customers and the mailing industry,” said Donahoe.
This organizational redesign builds on previous PMG announcements that included a 16 percent reduction in officer ranks, realigning revenue-generating business units, closing the Southeast Area Office, and further reducing the employee complement by about 7,500 positions.
While yesterday’s announcement focused on the administrative and executive corps, additional staff reductions will occur as the Postal Service makes necessary changes to its network and retail operations. The full scope and financial impact of these personnel actions should be realized in one calendar year — by March 2012.