How Deep Could USPS Regional Management Cuts Be?

In a previous post, I noted that the Postal Service plans to announce a cut around non-union 7,500 employees on March 25.   In all likelihood, a cut of that magnitude would involve a cut in the number of district and area offices along the line of the reductions suggested by the USPS - Office of Inspector General.

It is possible that the USPS - OIG may have underestimated the number of cuts in district and area offices that the Postal Service could cut and still manage the business effectively. Larger cuts would come if the Postal Service was as aggressive as United Parcel Service was in 2010 in cutting levels of management.

In 2010, United Parcel Service closed 26 of its 46 district headquarters offices and two of its five region headquarters offices.    For the Postal Service, similar cuts would eliminate 42 district offices and between two and four area offices beyond the one already eliminated this year,.

As far as job cuts, the reduction in management allowed United Parcel Service to reduce its workforce by2.7% to about 330,600 employees.  This is a cut of over 9,100 employees.  Most of the job cuts were management and non-union employees, as volume growth limited efforts to reduce the number of delivery drivers, package sorters, and over-the-road truck drivers.   A 2.7% cut in Postal Service employees would cut twice as many employees as are expected on March 25.

Upcoming Cuts in Non-bargaining Unit Jobs

At the February 9th meeting of the Board of Governors, Postmaster General Pat Donahoe announced that the Postal Service will be cutting some 7,500 administrative and line management jobs.   This represents around 11% of employees currently in non-bargaining unit jobs.