U.S. Postal Service Plans $30 Billion Cost-Saving Changes

WASHINGTON (Reuters) – The U.S. Postal Service announced on Thursday its goal to implement changes projected to save approximately $30 billion over the next decade.

Proposed Changes

• Adjustments to pick-up and drop-off times
• Faster delivery of certain mail classes
  These changes will be discussed at a virtual conference next month, aimed at gathering feedback from stakeholders, including the mailing and shipping community.

Implementation Timeline

The changes will be implemented after the Nov. 5 general election and the 2024 peak season, which occurs between Thanksgiving and New Year’s Day.

Postmaster General Louis DeJoy stated, “As we integrate our transportation, processing, and delivery network to logically sequence the flow of mail and packages by deploying improved operating practices in our redesigned facilities network, we expect to improve service reliability, reduce cost, and grow our business.”

The Postal Service has experienced over $87 billion in losses between 2007 and 2020. The anticipated changes are expected to save about $3 billion annually and reduce the number of truck trips, thus decreasing carbon emissions.