{"id":23702,"date":"2020-08-07T18:34:29","date_gmt":"2020-08-07T18:34:29","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2020\/08\/07\/usps-plans-for-hiring-freezes-early-retirements-under-continued-losses\/"},"modified":"2026-08-08T04:59:06","modified_gmt":"2026-08-08T04:59:06","slug":"usps-plans-for-hiring-freezes-early-retirements-under-continued-losses","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/management\/2020\/08\/07\/usps-plans-for-hiring-freezes-early-retirements-under-continued-losses\/","title":{"rendered":"USPS plans for hiring freezes, early retirements as it continues to lose billions of dollars"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The U.S. Postal Service reported continued financial losses for the third quarter of 2020, with the Postmaster General announcing Aug. 7 that the agency plans to modify its organizational structure to reduce costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis organizational change will capture operating efficiencies by providing clarity and economies of scale that will allow us to reduce our cost base and capture new revenue,\u201d said Postmaster General and CEO Louis DeJoy in a news release.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt is crucial that we do what is within our control to help us successfully complete our mission to serve the American people and, through the universal service obligation, bind our nation together by maintaining and operating our unique, vital and resilient infrastructure.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/management\/pay-benefits\/2020\/01\/21\/cutting-employee-pay-didnt-help-usps-as-much-as-it-hoped\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"201\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635561496748133257-fed-usps-gallery-4jpg_c767b5.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Cutting employee pay didn\u2019t help USPS as much as it hoped<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The U.S. Postal Service has reduced employee compensation costs over the last decade, but not as much as the agency initially predicted.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">On top of creating new business operating units, the organizational modifications include a management hiring freeze to \u201cprepare for future changes\u201d and a request for voluntary early retirement authority from the Office of Personnel Management. That authority allows an agency to temporarily lower the age and years of service requirements for retirement, with the goal of encouraging more employees that are on the cusp of retirement to make that transition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the news release, such initiatives are not designed to initiate a reduction in force or have an immediate impact on employees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Though revenue for the first three quarters of 2020 is $553 million greater than for the same period in 2019, due in part to a strong increase in package volume, the agency continues to report significant losses of $2.2 billion in the third quarter of this year compared to a net loss of $2.3 billion for the same quarter last year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe strong growth of our package volume in the third quarter was encouraging, but there is great uncertainty about whether that growth will be sustainable,\u201d said USPS Chief Financial Officer Joseph Corbett in a news release.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAt the same time, First-Class Mail and Marketing Mail have seen deep volume declines associated with the pandemic, and that lost volume may never return, as was the case following the Great Recession of 2007-2009. We cannot let the recent growth of our package business mask our underlying business model problems, and we are redoubling our efforts to develop a plan to ensure our viability to provide universal service to all of America.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Members of Congress, employee groups and financial experts have disagreed about the true heart of USPS financial declines, with many pointing fingers at the <a href=\"https:\/\/www.federaltimes.com\/federal-oversight\/congress\/2020\/02\/05\/house-votes-to-do-away-with-massive-usps-financial-burden\/\" target=_blank>prefunding mandate for employee retirement<\/a>, which has placed prolonged monetary strain on the agency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DeJoy told the USPS board of Governors Friday that he had reached an agreement with the Department of Treasury the week prior on the terms and conditions associated with the $10 billion loan authorized for the agency in the Coronavirus Aid, Relief and Economic Security Act, but noted that the lending authority will not solve the agency\u2019s \u201cliquidity crisis.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThese losses, driven by the economic shutdown\u2019s impact on first-class and marketing mail, show the need for federal assistance during the pandemic, just as other sectors have received,\u201d said Fredric Rolando, president of the National Association of Letter Carriers, in a statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIn this economic and public health crisis, the Postal Service is proving more essential than ever, allowing tens of millions of Americans to shelter at home while postal employees deliver needed supplies, medications and much more.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Members of Congress have been critical of DeJoy\u2019s management of the agency, such as his decision to <a href=\"https:\/\/www.federaltimes.com\/federal-oversight\/2020\/08\/03\/house-panel-calls-new-postal-chief-to-explain-mail-delays\/\" target=_blank>eliminate overtime for hundreds of thousands of workers<\/a> and cause delays in delivery.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Postal Service reported another quarter of financial losses, despite package volume increases, Aug. 7.<\/p>\n","protected":false},"author":7,"featured_media":53885,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":15,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[106,31,15,33],"tags":[],"coauthors":[2853],"class_list":["post-23702","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-brief","category-home","category-management","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"XOO73ITBQFHIREZS7ZSDGHO2RE","arc_canonical_url":"\/management\/2020\/08\/07\/usps-plans-for-hiring-freezes-early-retirements-under-continued-losses\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>USPS plans for hiring freezes, early retirements as it continues to lose billions of dollars - Federal Times<\/title>\n<meta name=\"description\" content=\"The U.S. Postal Service reported another quarter of financial losses, despite package volume increases, Aug. 7.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"USPS plans for hiring freezes, early retirements as it continues to lose billions of dollars\" \/>\n<meta property=\"og:description\" content=\"The U.S. Postal Service reported another quarter of financial losses, despite package volume increases, Aug. 7.\" \/>\n<meta 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