US Postal Service announces next phase of reorganisation

US Postmaster General Louis DeJoy has announced details of the next phase of the US Postal Service reorganisation plan that he first announced in August 2020.

The next phase will include the following:

District Consolidation Plan: The existing 67 Postal Service Districts will be consolidated to 50 Districts. New District territories will closely align to state boundaries. Districts will align with the communities the Postal Service serves and provide familiar boundaries for employees, customers and stakeholders.

Centralization of Marketing functions: The Marketing functions previously performed at the Area and District levels will be centralised into the Chief Customer and Marketing organisation, including Consumer and Industry Affairs and the Bulk Mail Entry Units (BMEUs).  In May, the District Retail function will be centralised into the Headquarters Retail and Delivery function.  In the interim, the Retail teams will be assigned under one of the 50 District Managers.

Realignment of Logistics and Processing Operations: To ensure alignment with Retail and Delivery Operations, and Logistics and Processing Operations, a thirteenth division will be created.  Processing operations is organised into 2 regions, each geographically aligned with two retail and delivery areas; and divided into 6 or 7 divisions for a total of 13 divisions.  Logistics is organised into 4 regions, each geographically aligned to one retail and delivery area; and divided into 3 or 4 divisions for a total of 13 divisions. No divisions or regions will span across more than one area.

“These organisational changes will strengthen our mission and commitment to serve the American people by improving efficiency and streamlining decision making throughout the organisation,” said Postmaster General DeJoy. “By improving operational focus and business strategy execution along with greater investment, we will strengthen our public service mission, achieve service excellence, and place the Postal Service on a path toward financial sustainability.”

DeJoy continued, “Since 2007, we have recorded significant net losses each year. Absent substantial changes, our financial losses will continue to widen, and our ability to invest in the future of the organisation will be severely curtailed.”

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