My previous input on this subject demonstrated the USPS is a mess. This edition will provide a solution.
The USPS recorded a $9B loss in FY 2025 ($20.5 B over the last 3 reporting periods). This was accomplished by 600,000 employees earning $80,000 per year in wages and benefits. In order to reach a break even position, simple division yields an excess of 112,000 employees.
Employee costs represent 50% of the total operating cost. In other words, it’s the biggest hog at the trough. Switching to more fuel efficient delivery vehicles and energy efficient light bulbs would temporarily placate the climate change warriors, but do little good to the bottom line.
So, given that a break even position is desirable what steps can be taken to achieve this? Some ideas:
1. Offer employee buy outs
2. Offer early retirements
3. Consolidate middle management
4. Cancel open employee requisitions
5. Implement a reduction in force
6. Raise postal rates as a last resort
The USPS management has annually played “kick the can” with this problem. In this case it’s the taxpayer’s “can” being kicked. They are satisfied with the status quo because to actually affect a change would be politically toxic. Think of a young child trying to manage a box full of rabid squirrels and you are close.
The result of this style is all too predictable-we will be lead down the primrose path to the precipice, draconian and foolish decisions will be made, and the taxpayer will be left holding the bag. This is what the bureaucrats say they don’t want, but actually do want. I want to play guitar like Jimmy Page, own a Ferrari, and date a super model and I’m currently accepting donations. But, this won’t happen either. Wink.
Let’s solve this problem. Locally, Henry County has 50,000 residents, is an area of 826 square miles and has 14 post offices. Deliveries are made to 20,000 residential address and 1,100 businesses. The shape of Henry County is roughly a square. I suggest the number of post offices need to be reduced to an efficient level. Looking at a map suggests Geneseo, Colona, Kewanee and Cambridge geographically and population wise make sense. This leaves 10 other existing post offices as excess to requirements. The offices themselves could be sold/repurposed, delivery vehicles transferred to other jurisdictions, and result in a net reduction in personnel.
So this action combined with the previously listed steps would be a meaningful reduction. Implemented on a regional or national scale would further help matters.
The USPS at its peril has been slow to adopt technology based solutions. Another factor is to AI model this problem and have the computer brainiacs in D.C. develop algorithms. We don’t need another AMTRAK, or Social Security situation! I detest it when politicians, policy wonks, consultants and lawyers pretend they are behaving with your best interest at heart. It rarely works out. Good leadership involves critical thinking, tough decisions and sacrifices.
My third and final submission on this subject will outline pithy and non-satisfying experiences with the Geneseo Post Office. Stay tuned.
