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US Post office mulls closing offices to save money
Source: Agencies |
July 26, 2011, Tuesday
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Online Edition
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THE Postal Service is launching a study of thousands of local post offices for possible closure in an effort to save money.
The cash-strapped agency, which lost US$8 billion last year, scheduled a briefing today at which it is expected to announce the action.
Most of the approximately 3,600 offices that face reviews are in rural areas, but postal official say they are looking into alternate service, such as locating offices in local businesses, town halls or community centers.
In those cases the so-called Village Post Office would replace one to be closed.
And coming under review doesn't necessarily mean an office will close. The post office announced in January it was reviewing 1,400 offices for closing. So far 280 have been closed and 200 have finished the review process and will remain open.
The post office has been struggling to cope with the loss of first-class mail to the Internet at the same time a lot of advertising mail declined because of the recession. Last year an estimated 50 percent of bills were paid by Internet rather than the mail, up from 5 percent a decade earlier.
The cash-strapped agency, which lost US$8 billion last year, scheduled a briefing today at which it is expected to announce the action.
Most of the approximately 3,600 offices that face reviews are in rural areas, but postal official say they are looking into alternate service, such as locating offices in local businesses, town halls or community centers.
In those cases the so-called Village Post Office would replace one to be closed.
And coming under review doesn't necessarily mean an office will close. The post office announced in January it was reviewing 1,400 offices for closing. So far 280 have been closed and 200 have finished the review process and will remain open.
The post office has been struggling to cope with the loss of first-class mail to the Internet at the same time a lot of advertising mail declined because of the recession. Last year an estimated 50 percent of bills were paid by Internet rather than the mail, up from 5 percent a decade earlier.
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