After an almost half-year feasibility study, America’s Postal Service (USPS) announced new plans to combine and close 223 Area Mail Processing plants in America, including California, New York and other states. The new plans will close 14 mail processing centers in California, 12 units in New York and 9 plants in Illinois. These new plans will be affecting 35,000 jobs.
The latest setbacks that hit America’s largest postal service were due to several reasons. According to the press release, USPS cited a financial crisis that started in the late 2007, more people use e-mails and Internet to communicate, and its continuing obligation with retirement benefits.
The Area Mail Processing plants closing could help USPS to save over $2 billion for the next three years. USPS is on track to reduce its operating costs of about $20 billion by 2015.