The Economy Project
6:13 pm
Tue August 25, 2009

Cash Strapped US Postal Service Offers Employees Buyouts

Louisville, KY – The US Postal Service announced today they will offer $15,000 buyouts to employees in an effort to cut costs. The recession and internet communication have the USPS facing a seven billion dollar shortfall. USPS spokesperson for Kentuckiana David Walton says the buyouts are only the latest in a series of cost-cutting measures.

"We've put a hiring freeze on," says Walton. "We've offered our early retirements earlier this year. We've done things like readjust our mails routes, we've consolidated mail facilities. So again, we're trying to take actions that are going to help mail delivery become more efficient."

Walton says he's already spoken to several employees who are interested in the buyouts. The postal service estimates up to 30,000 employees could take the offer, which could save as much as $500 million over the next two years. Letter carriers are not eligible for the buyout. Workers have until September 25 to sign on to the buyout.