Postal Service to trim 800 jobs in reorganization move

  • Friday, September 7, 2001 9:00pm
  • Business

Associated Press

WASHINGTON — Postmaster General Jack Potter announced a reorganization of the Postal Service’s management Friday that will include elimination of 800 headquarters jobs.

"This is the most sweeping restructuring that we’ve had since 1992. We’ve targeted it at reducing our overhead and our administrative costs," Potter told The Associated Press.

He said the agency will re-evaluate many of its activities this year. It will eliminate two regional management offices and seek to cut other regional management staffs by 30 percent, he said.

Early this year the agency faced the potential for a $3 billion loss from rising fuel and salary costs. Postal rates have since been increased, construction frozen and other cuts made that have reduced the potential losses to about $1.65 billion.

While the post office is an independent federal agency, it does not receive tax money for operations and is expected to work in a businesslike manner to break even over time.

"Headquarters and headquarters-related staff positions will be redefined to focus on priorities and results," Potter said. He has established a new marketing organization to supervise service and product development, pricing and sales.

There have been suggestions that the post office might give up its electronic commerce activities. Potter said this area will be reviewed but not abandoned.

"I will take a close look at our e-commerce activities, and we will retain those that support the growth of our core products and others that are profitable," he said.

"In cases where we’re off our business plan, we’re going to make changes and have things go away," he said.

Potter said he will set up a six-month initiative, "and if things aren’t on track, put them on a risk list."

In the regional reorganization, he said the plan is to consolidate activities.

The Mid-Atlantic regional office in Columbia, Md., and the Midwest regional office in St. Louis will be closed.

Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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