Saturday, February 25, 2012
US Postal Service to Cut 35,000 Jobs Amid Processing Plant ClosuresUS Postal Service to Cut 35,000 Jobs Amid Processing Plant Closures
The financial issues faced by the United States Postal Service are mainly due to the changing fashion in which people send mail. By 2015, the USPS will face an annual loss $18.2. With losses like that, changes need to occur within the USPS in order to stay viable. They have closed 214 mail-processing facilities since 2005, and close 226 more before February 2013. Unfortunately, this means many job losses, but a government institution cannot lose that kind of money each year and expect not to be privatized. Some other ways the USPS is trying to lower costs is asking for legislation to cut employee pensions and stop delivery service on Saturdays.
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2 comments:
After reading this article it reminds me of what we have been talking about in Gitter's Public Finance class, and that is that private companies are more effective. As the USPS continues to lose business to email/internet, they should look to privatizing and see if there is way for the USPS to be profitable again.
While private companies are usually more effective, I sincerely doubt that the USPS could successfully be privatized. For one thing, it is simply not a very profitable industry. Also, if it were to privatize, it would have to compete with private courier services like FedEx and UPS. It just doesn't seem like the postal service could survive a transition into the private sector.
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