USPS proposes changes to save $3B per year, starting in 2025
The U.S. Postal Service plans to save $3 billion annually in changes that reflect its greater reliance on streamlined regional networks, while maintaining local mail delivery times of one to three days and more closely following some delivery schedules.
Officials said the election post will not be affected.
The proposal, announced Thursday, would adjust mail delivery times while maintaining a commitment to up to five days of delivery time for the flagship “Ground Advantage” nationwide and up to three days of delivery time for local first-class mail.
Postmaster General Louis DeJoy said the changes coming next year are necessary to “enable us to operate more efficiently and reliably, grow our business and give us a chance for a viable future” after an 80 percent decline in First-Class mail since 1997 and a corresponding increase in packages. All told, the Postal Service has racked up more than $87 billion in losses from 2007 through 2020.
The Postal Service announced the details ahead of a Sept. 5 meeting at which the proposed changes will be discussed with stakeholders before being submitted to the Postal Regulatory Commission.
Election mail and holiday mail would not be affected because the proposed changes would not take effect until next calendar year, officials said. Medicines would also be delivered at their current speed, or faster, under the proposal, officials said.
The proposal reflects the Postal Service’s move to overhaul its processing and transportation network with an emphasis on large regional hubs, something that’s already beginning to happen in Atlanta; Richmond, Virginia; and Portland, Oregon. Changes to better utilize existing ground networks would require the Postal Service to adjust pickup and delivery times between post offices and processing plants, a process that would increase the speed of some mail, officials said.
The proposal is in line with the agency’s mandate to be financially self-sufficient while continuing to deliver to every address in the country six days a week. If passed, 75 percent of first-class mail would see no change from current service standards and about two-thirds of mail would be delivered in three or fewer days, the Postal Service said.
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Sharp reported from Portland, Maine.