Postal Updates

DeJoy presses ahead with USPS reorganization

Mar 4, 2021, 2 PM

Washington Postal Scene by Bill McAllister

Postmaster General Louis DeJoy, showing no sign that he is retreating from his plan to cut costs, has announced a second wave of changes for the United States Postal Service that include voluntary retirements for nonunion workers, shrinking the number of district offices and centralizing marketing operations.

“These organizational changes will strengthen our mission and commitment to serve the American people by improving efficiency and streamlining decision making throughout the organization,” said DeJoy in a March 3 news release.

“By improving operational focus and business strategy execution along with greater investment, we will strengthen our public service mission, achieve service excellence, and place the Postal Service on a path toward financial sustainability,” he said.

DeJoy tied the changes to the ongoing financial losses that he has said must end.

“Since 2007, we have recorded significant net losses each year,” he said.

“Absent substantial changes, our financial losses will continue to widen, and our ability to invest in the future of the organization will be severely curtailed.”

DeJoy’s plan will shrink the Postal Service’s current 67 postal districts to 50.

The new districts will “closely align to state boundaries,” the USPS said.

The postmaster general’s plan also includes the centralizing of marketing functions currently performed at area and district levels into the chief customer and marketing organization at Postal Service headquarters.

According to the news release, in May district retail functions will be centralized into the headquarters retail and delivery.

Processing operations will be organized into two regions, each geographically aligned with two retail and delivery areas, the release said.

Logistics operations will be split into four regions, each geographically aligned to a retail and delivery area.

During the next two months, the USPS will make staffing changes for “the final phase of the organizational restructure,” the announcement said.

An announcement of the final structure is planned for May, the USPS said.

The voluntary retirements that DeJoy is seeking will not include a separation incentive, it said.

Asked if the plan has a projected cost or if it seeks a certain number of voluntary retirements, USPS spokesman David Partenheimer said: “At this time, I don’t have numbers to provide. I hope to have additional information at a later time.”

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