Does the Postal Service Need 34,223 Offices?

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By Douglas A. McIntyre Published
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Does the Postal Service Need 34,223 Offices?

© krblokhin / iStock Editorial via Getty Images

The U.S. Postal Service (USPS) has 230,000 trucks, 516,636 career employees, 136,531 noncareer workers and 34,223 retail offices. And it loses money, which included $459 million in the most recent quarter. To become profitable again, the USPS will need to raise stamp prices considerably, or cut workers and, just as important, offices.

The USPS faces several challenges from outsiders. Among the issues is why it has to deliver mail six days a week. With the surge of the use of email, which often includes large documents, people can electronically get most of what the USPS had to deliver in the past.

The USPS has the problem that it cannot raise prices on its own. It must turn to the Postal Regulatory Commission, which often does not buy into suggestions by USPS management.

One part of USPS operations that is absurd is the fact that it has over 34,000 offices. Once again, much of the communication among Americans and the delivery of documents is done electronically. People do not need a physical post office as much as they did in the past.
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The USPS also competes with UPS and FedEx, which have tens of thousands of physical locations of their own.

Each post office needs to be staffed, which means tens of thousands of people to operate these.
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No one can reasonably make the argument that all post office locations should be shut down. On the other hand, the USPS has not made a powerful case about why the count is so large.
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If the USPS wants to make money, it will need to cut costs. Physical locations are a logical place to start.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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