WASHINGTON — Already mocked by some as “snail mail,” first-class U.S. mail will slow even more by next spring under plans by the U.S. Postal Service to eliminate more than 250 processing centers, including four in Colorado. Nearly 30,000 workers would be laid off too as the post office struggles to respond to a shift to online communication and bill payments.
The cuts are part of $3 billion in reductions aimed at helping the agency avert bankruptcy next year. They would virtually eliminate the chance for stamped letters to arrive the next day, a change in first-class delivery standards that have been in place since 1971.
The plan technically must await an advisory opinion from the independent Postal Regulatory Commission, slated for March. But that opinion is nonbinding, and only substantial pressure from Congress, businesses or the public might deter far-reaching cuts.
In Washington on Monday, postal vice president David Williams said the post office needs to move quickly to cut costs as it seeks to stem five years of red ink amid steadily declining mail volume. After hitting 98 billion in 2006, first-class mail volume is less than 78 billion. It is projected to drop by roughly half by 2020.
The agency already has announced a 1-cent increase in first-class mail to 45 cents beginning Jan. 22. Williams said in certain narrow situations, first- class mail might still be delivered the next day — if, for example, newspapers, magazines or other bulk mailers are able to meet tighter deadlines and drop off shipments directly at the processing centers that remain open.
But in the vast majority of cases, everyday users of first-class mail will see delays.
The Postal Service faces imminent default — this month — on a $5.5 billion annual payment to the Treasury for retiree health benefits and expects to have a record loss of $14.1 billion next year.
“Are we writing off first- class mail? No,” Williams said. “Customers are making their choices, and what we are doing is responding to the current market conditions . . .. We have to do what’s in our control to put the Postal Service on solid financial ground.”
