Leaders of the United States Postal Service are going forward with cost-cutting measures-without Congress’ approval.
The Postal Service Board of Governors approved restructuring measures and instructed leaders to revise its 2012 five-year comprehensive plan to account for current financial and liquidity conditions, according to a USPS news release.
The 112th Congress adjourned without passing Postal Service reform that would help the institution allow for flexibility in the USPS business model and make changes to save money.
For example, leaders have discussed congressional approval on a five-day delivery, which would save the USPS more than $3 billion a year, according to Nooga.com archives.
Leaders recently reported that the USPS is losing $25 million a day.
Earlier this month, the Postal Service Board of Governors talked about a wide range of “accelerated cost-cutting and revenue generating measures,” according to a USPS news release.
Leaders cited the fact that they can’t wait indefinitely for legislation, so the board directed management to go on with the restructure of the USPS operations.
USPS leaders are now implementing cost-reduction efforts throughout its retail, delivery and mail-processing operations, according to the release.
USPS spokesman David Partenheimer said that leaders will have specific details about the cost-cutting measures as soon as possible.
“Our senior leadership team is currently updating our five-year business plan as directed by the Board of Governors,” he said via email. “When completed, we will first provide details to our employees and then make the updated plans public.”
Since 2006, USPS leaders have reduced annual costs by about $15 billion and cut the career workforce by 24 percent. That’s 168,000 people.
Leaders said that, despite the cuts, USPS has still delivered record levels of service to customers.
“Despite achieving record growth in its package business and stabilization of other revenues, the Postal Service continues to operate with an inflexible business model that hinders its ability to be self-sufficient,” according to the news release.
The USPS ended the 2012 fiscal year with a record net loss of $15.9 billion and has been struggling the past two years, defaulting on mandated payments to prefund employee health benefits and facing declining amounts of first-class mail, which has been a big revenue boost in the past.
“The Postal Service continues to seek legislation to provide it with greater flexibility to control costs and generate new revenue and encourages the 113th Congress to make postal reform legislation an urgent priority,” according to the release.
Updated @ 10:54 a.m. on 1/24/13 to add more information as it became available.