USPS declares 2,000 closings in 2011

The Postal service will close 2,000 locations in 2010 as part of a cost-cutting plan declared Monday. Because of a law that restricts the USPS from post office closings for budgetary reasons, the locations targeted in 2011 are considered branches, or stations instead. Slashing costs to stem losses has not worked so far for the USPS, which lost billions last year and is expected to lose billions more in 2011. They’ve been hanging on by a thread and might possibly be looking into short term loans to keep afloat. Source for this article – Thousands of Postal Service closings announced for 2011 by MoneyBlogNewz.

Meaning something the Postal service need to work on still

There have been 500 postal closings already prepared. Nevertheless, 2,000 closings is the goal the Postal service has for this year. The Postal service is required by law to provide an equal measure of service to each and every corner of the U.S. In 2010, the agency lost $8.5 billion though. It was asked for an increase postage rates by the Postal Regulatory Commission. This was rejected though. The USPS cited the recession and Internet competition within the request, but the commission said the agency's problems were from poor management and waste. About one-third of Postal service employees have been cut since 1999. To cut costs, dropping Saturday delivery and closing smaller postal locations are on the table.

Alternatives for the postal increase

You will find 16,000 Postal Services being re-evaluated by the USPS even though 2,000 could be cut in just 2011. This number represents 50 percent of the post offices within the United States that are running at a deficit. The agency is also lobbying Congress to change the law that only allows postal service closings because of maintenance problems or expired leases, not because they're money pits. After being snubbed on postage increase, the Postal service is attempting to convince politicians that its vast network of 32,000 locations is outmoded. Most of the facilities were built decades ago, long before e-mail, FedEx and the United Parcel Service.

Postal period being over

The USPS depends on mail volume to survive. It’s odd to see somebody writing a letter now and days. Also, junk mail is not sent nearly as often while bills appear to be paid online almost all of the time now. It seems the only answer to the issue is to get the buildings shut down. Small towns and politicians think this is absurd and should not happen. The employee benefits are the first thing suggested to go. Then the USPS can start thinking about shutting down the mail system.

Information from

Wall Street Journal

online.wsj.com/article/SB10001424052748704881304576094000352599050.html

CNN Money

money.cnn.com/2011/01/24/news/economy/postal_service_close/?npt=NP1

USA Today

content.usatoday.com/communities/ondeadline/post/2011/01/us-postal-service-set-to-begin-closing-2000-post-offices/1