Federal Government Policy and Business

USPS Has Not Saved as Much as It Expected From Cutting Post Office Hours

Government Executive: The U.S. Postal Service has saved less money than it anticipated from its long-term plan to cut hours at post offices across the country, according to a new report, and it has used incomplete and inaccurate information to make its savings estimates.

USPS neglected to factor in potential revenue losses when suggesting it would save $500 million annually by keeping post offices open two, four or six hours per day instead of eight hours, according to the Government Accountability Office. Even without factoring in the net effects, the Postal Service has lowered its projected savings from half a billion per year to $337 million annually due to increased labor costs, a 35 percent reduction.

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