The United States Postal Service announced Thursday , resulting in the closure of the North Peninsula Delivery Distribution Center in Burlingame.
This summer, the Postal Service will begin making 140 consolidations by February 2013, with 89 more beginning in February 2014. The USPS first announced its plan on proposed service changes for its 461 processing centers in response to financial troubles back in December.
“We simply do not have the mail volumes to justify the size and capacity of our current mail processing network,” said Patrick R. Donahoe, Post Master General and Chief Executive Officer in a statement. “Our current plan meets our cost reduction goals, ensures seamless and excellent service performance throughout the implementation period, and provides adequate time for our customers to adapt to our network changes.”
The plan is expected to save the Postal Service $1.2 billion per year and will reduce the workforce by 13,000 employees. USPS is projecting a $14 billion loss for the 2012 fiscal year.
Consolidations will begin this summer with a break from September through December while high-priority mail related to the upcoming election and holidays is sent.
Overnight mail service will additionally be modified, shrinking the distance for which overnight service can be provided for 2013, with further changes coming in 2014.
“We are essentially preserving overnight delivery for First-Class Mail through the end of 2013, although we are collapsing the distance that we can provide overnight service to the distribution area served by a particular mail processing facility,” said Megan Brennan, USPS chief operating officer.
Consolidations mainly involve transferring the mail processing operations in smaller facilities to larger facilities. Burlingame operations are expected to move to the San Francisco Processing and Distribution Center at 1300 Evans Ave.
In the Bay Area, the Petaluma North Bay Processing and Distribution Center will also close, with service moving to Oakland.