Postal Service to cut officer jobs by 16%

The US Postal Service will cut the number of its VP-level officer jobs by 16%, from 44 to 37, it said January 7.

The USPS will also eliminate the SVP title across the organization and close its Memphis, TN-based Southeastern regional office, which has 119 employees. The number of job losses has not been determined. Some of those employees may be moved to other Postal Service positions, said Joanne Veto, senior manager of PR at the USPS.

The personnel moves are the first major changes to the USPS implemented by new Postmaster General Patrick Donahoe, who succeeded John Potter in the role last month. Last year, Potter announced his 10-year plan to restore financial stability at the USPS, including a move to five-day home delivery and an “exigent” price increase that was denied by the Postal Regulatory Commission.

The personnel moves come after the USPS saw a net loss of $8.5 billion in 2010. The organization also lost $456 million in November.

The quasi-government agency also realigned numerous business units, placing responsibility for market dominant and competitive products under Gary Reblin, VP of domestic products, who was previously VP of shipping services. Susan LaChance, VP of consumer and industry affairs, was given oversight of customer interaction and support. She was previously VP of employee development and diversity.

USPS also restructured oversight of human resources, customer interaction, and support and sustainability.

Correction: An earlier version of this story did not accurately describe the process for moving employees of the USPS' Southeastern regional office to other jobs. Many workers will be employed elsewhere within the US Postal Service. Direct Marketing News regrets the error.