USPS Announces $3 Billion Cost-Cutting Plan: Network Overhaul and Delivery Changes Ahead

USPS Unveils Plan to Save $3 Billion Annually Through Network Overhaul

The U.S. Postal Service (USPS) announced on Thursday a comprehensive plan aimed at saving $3 billion annually through streamlined regional networks and adjusted mail delivery times. The proposal, which maintains local mail delivery times of one to three days, reflects the agency’s efforts to increase efficiency in response to changing mail patterns.

Under the new plan, USPS will ensure a maximum five-day delivery for “Ground Advantage” nationwide, while guaranteeing a maximum three-day delivery for local first-class mail. Postmaster General Louis DeJoy emphasized the necessity of these changes, citing an 80% drop in first-class mail since 1997 and a corresponding growth in package deliveries.

The proposed changes come in the wake of significant financial challenges faced by the USPS, which has accumulated over $87 billion in losses from 2007 to 2020. Despite these adjustments, the agency affirms that election mail and holiday shipments will not be affected, and medications will continue to be delivered at current speeds or faster.

USPS plans to unveil further details ahead of a September 5 stakeholder meeting, after which the changes will be submitted to the Postal Regulatory Commission for approval. If approved, the new system would not be implemented until the next calendar year.

The network overhaul reflects USPS’s move towards utilizing large regional hubs in cities such as Atlanta, Richmond, and Portland, Oregon. These adjustments aim to increase the speed of some mail deliveries through optimized pickup and drop-off times between post offices and processing plants.

While aligning with the mandate to be financially self-sufficient, USPS maintains its commitment to deliver to every address across the nation six days a week. The agency projects that 75% of first-class mail will see no change in service standards, with around two-thirds of mail being delivered in three days or fewer.

As the USPS continues to adapt to evolving mail trends, these proposed changes represent a significant step towards modernizing its operations while striving to maintain reliable service for all Americans.