U.S. Postal Service Aims to Save $30 Billion Over 10 Years with Operational Changes

The U.S. Postal Service (USPS) announced on Thursday a strategic plan designed to achieve approximately $30 billion in savings over the next decade. The initiative includes a range of proposed changes aimed at optimizing its operations and improving service efficiency.

Key elements of the plan involve adjusting pick-up and drop-off times, speeding up the delivery of certain types of mail, and refining the overall logistics of its network. These changes will be detailed and discussed during a virtual conference scheduled for next month, where feedback will be solicited from stakeholders, including members of the mailing and shipping industries.

Postmaster General Louis DeJoy emphasized that the proposed changes will not be implemented until after the November 5 general election and the peak holiday season between Thanksgiving and New Year’s Day. “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,” DeJoy stated.

The Postal Service, which has struggled with financial challenges, accumulating more than $87 billion in losses from 2007 to 2020, anticipates that the new measures will generate annual savings of approximately $3 billion. Additionally, the plan aims to reduce the number of truck trips, contributing to a decrease in carbon emissions and promoting environmental sustainability.

These changes are part of a broader effort to revamp the Postal Service’s operations, improve service quality, and address long-standing financial difficulties. The initiative reflects the USPS’s commitment to modernizing its infrastructure while enhancing its service offerings and reducing operational costs.