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article imageUSPS cutting 35,000 jobs, 223 centers closing by May

By Stephanie Medeiros     Feb 24, 2012 in Business
The struggling USPS will be letting go roughly 35,000 staffer jobs at 223 centers as they continue to reconstruct their business strategy.
It is no secret that the United States Postal Service (USPS) has been in a dire situation. Even before the beginning of the recession and down economy in the United States, USPS has not rebounded. Because of these desperate times, USPS will be cutting 35,000 jobs in order to see some sort of gain and continue to function normally.
As reported by The Consumerist, USPS is seeing fierce competition from private shipping companies like FedEx and UPS as well as mail going digital with email and online messages, which are much quicker and direct.
On top of letting go several staffers, USPS wants to raise the price of the stamp, as Digital Journal reported on as well as killing next-day mail as reported by the New York Times. With stamps hovering at 50 cents and services dwindling in the favor of going digital, it is questionable if having a leaner staff might help.
USPS has been planning this loss of staffers since September of last year, saying over half of their mail processing buildings would be closing down, which in turn meant 35,000 people losing their jobs. However, all of this trimming is said to help USPS save about $2 billion annually.
Recently, USPS was able to save some processing centers from being shut down, but as Consumerist reports, the number of unemployed will remain roughly the same. It has been reported that 223 of the 264 processing centers will be closed definitively. Breaking it down, 30,000 of those jobs were full-time positions, whereas 5,000 of those jobs were considered part-time or "non-career." Employees will be mailed their pink slips soon, but, the closing of centers won't begin until mid-May.
Late last year, USPS tried to delay closings in order to have the government intervene and possibly help, as reported by The Gothamist. The USPS reported they could possibly run out of funding "in less than a year" in 2011, which prompted the reconstruction of the post service. As USPS said, "... Given the Postal Service’s financial situation and the loss of mail volume, the Postal Service must continue to take all steps necessary to reduce costs and increase revenue. The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations."
While all of these cost-cutting maneuvers might help bring in $2 billion, it is nothing compared to the over $14 billion the USPS is expected to lose this year alone.
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