OIG: Status Report on USPS Network Rationalization Initiatives

OIG: Status Report on USPS Network Rationalization Initiatives - Between FYs 2005 and 2009, the Postal Service made progress in its effort to streamline its mail processing and transportation infrastructure; however, management has been unable to adjust resources to fully offset mail volume declines, resulting in a deteriorating financial condition. Mail volume decreased by approximately 35 billion pieces during this period. See Appendix B for our detailed analysis of this topic. In response, management has:

? Reduced approximately 205.2 million workhours — the equivalent of 117,273 employees — with the majority in mail processing and customer service functions.
? Reduced 37 million highway contract route (HCR) miles (but overall transportation expenses increased by $1.5 billion).
? Closed 68 airport mail centers (AMCs) and 12 remote encoding centers (RECs).
? Realigned bulk mail center (BMC) operations with no BMC closures.