The United States Postal Service (USPS) announced the next phase of its organizational changes, including district consolidations, centralization of marketing functions, and realignment of Logistics and Processing Operations, claiming these changes will drive efficiencies and better decision-making.
Postmaster General and CEO Louis DeJoy provided details of the next phase of organizational changes he first announced in August 2020:
- District Consolidation Plan: The existing 67 Postal Service Districts will be consolidated into 50 Districts. New District territories will closely align to state boundaries. Districts will align with the communities the Postal Service serves and provide familiar boundaries for employees, customers, and stakeholders.
- Centralization of Marketing functions: The Marketing functions previously performed at the Area and District levels will be centralized into the Chief Customer and Marketing organization, including Consumer and Industry Affairs and the Bulk Mail Entry Units (BMEUs). In May, the District Retail function will be centralized into the Headquarters Retail and Delivery function. In the interim, the Retail teams will be assigned under one of the 50 District Managers.
- Realignment of Logistics and Processing Operations: To ensure alignment with Retail and Delivery Operations, and Logistics and Processing Operations, a thirteenth division will be created. Processing operations is organized into 2 regions, each geographically aligned with two retail and delivery areas; and divided into 6 or 7 divisions for a total of 13 divisions. Logistics is organized into 4 regions, each geographically aligned to one retail and delivery area; and divided into 3 or 4 divisions for a total of 13 divisions. No divisions or regions will span across more than one area.
“These organizational changes will strengthen our mission and commitment to serve the American people by improving efficiency and streamlining decision making throughout the organization,” said DeJoy. “By improving operational focus and business strategy execution along with greater investment, we will strengthen our public service mission, achieve service excellence, and place the Postal Service on a path toward financial sustainability.”
“Since 2007, we have recorded significant net losses each year,” he added. “Absent substantial changes, our financial losses will continue to widen, and our ability to invest in the future of the organization will be severely curtailed.”
Over the next two months, the Postal Service will be engaged in specific activities to complete the staffing changes for the final phase of the organizational restructuring. The announcement of the final structure and staffing is planned for May 2021.