Postal Service to cut 7,500 positions

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The US Postal Service said March 24 that it will eliminate 7,500 positions in the next year as part of an effort to cut $750 million in costs.

The USPS will cut the positions through a combination of buyouts, layoffs, and the elimination of some jobs, said Joanne Veto, senior manager of PR at the Postal Service.

The organization will offer voluntary early retirement to employees who are 50 years old and have 20 years of service, or to those at any age who have 25 years of experience. Employees who accept the offer will receive $20,000 over two fiscal years.

The USPS will also close seven administrative district offices, including facilities in Ohio, Michigan, New Mexico and Georgia. Those closures will not affect customer service, delivery or operations, the USPS said.

The USPS also cut the number of its VP-level officer jobs by 16% in January, and eliminated the SVP title across the organization. It also closed its Memphis, Tenn.-based Southeastern regional office.

The Postal Service has warned that it could run out of money by the end of this fiscal year, which closes September 30. The organization saw a net loss of $8.5 billion in its 2010 fiscal year.

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