The Postal Service is adjusting its size to align with our customers’ needs to keep mail affordable. This means making better use of space, staffing, equipment and transportation.
In 2012, 2013 and 2014, the Postal Service consolidated 143 mail processing facilities. This rationalization of our network was highly successful, and resulted in negligible service impact, required no employee layoffs and generated annual cost savings of approximately $865 million. In 2014, the Postal Service announced that it would begin Phase 2 of its network rationalization of mail processing facilities in early 2015.
After peaking at 213.1 billion in 2006, mail volumes declined to 155.4 billion in 2014. Consequently, we don’t need as many mail processing facilities as we once did and have consolidated more than 350 mail processing facilities since 2006.
We’ve also consolidated or reduced more than 22,000 city delivery routes since 2007, including 802 in 2014. This reduces compensation and gasoline costs, as well as wear and tear on Postal Service vehicles.