The Postal Service has announced a 10-year plan to cut costs and increase productivity to respond to mail volume declines and a projected $238 billion shortfall over the next decade that could occur without changing course.
The "aggressive" plan also includes legislative and regulatory changes that USPS says are necessary to maintain a viable Postal Service.
"The crisis we’re facing gives us an historic opportunity to make changes that will lay the foundation for a leaner, more market responsive Postal Service that can thrive far into the future," said postmaster general John Potter.
He outlined actions that could equate to about $125 billion in savings over the next decade that build on efforts in recent years including cutting work hours.
USPS proposes to close a remaining gap of about $115 billion by restructuring retiree health benefits payments, adjusting delivery days – presumably moving to a five-day delivery week, something President Obama has stated opposition to, and shifting postal services to locations such as grocery stores and pharmacies.
The plan includes establishing a more flexible workforce and price setting and an expanded product line, as well as a "modest" and needed price increase for 2011.
