Federal Manager's Daily Report

Postmaster General John Potter told the National Postal Customer Council in a recent annual address that the Postal Service needs the ability to adjust the capacity of its network to bring it in line with reduced mail use.

He said doing so could save the service as much as $3.5 billion a year, and that the service has managed to cut spending by $6 million in 2009 through a variety of means including consolidations.

“The Postal Service must have the ability to manage its business, to adapt quickly to the needs of our customers and the marketplace,” said Potter, adding, “And our business model must change to reflect the reality of a volatile economy and a communications marketplace that has been undergoing a transformation as profound as anything that has ever come before.”

 

He cited other key areas USPS is seeking to address through legislation, including changes to its approximately $5 billion annual obligation to pre-fund retiree health benefits, as well as flexibility to expand product offerings.