Post Office Looks To Overhaul Business Model

03.11.10 | FL News Team

With the Postal Service falling deep into the red, Postmaster General John Potter is proposing some ambitious changes in the business model. The proposal he's putting before Congress would overhaul the current strategy and could save billions of dollars. Part of the overhaul would require closing some post office locations. Potter says internet service and smaller post office locations inside grocery and convenience stores would fill that gap.

 The Post is also looking to cut labor costs by increasing the part-time workforce and offering attrition to full-time workers nearing retirement. An estimated 300-thousand postal workers are scheduled to retire over the next ten years. Potter says another crucial step to saving money is cutting Saturday service, the lightest delivery day. Potter says without the sweeping changes, the Postal Service can expect to lose more than 200-billion dollars over the next decade. The plan will have to gain Congressional approval.