Postal Service reorganizes, cuts officer jobs

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Washington, D.C.—Facing increasing losses and the prospect of no postal rate increase this year, the U.S. Postal Service announced plans to cut VP-level jobs by 16% and close its Southeast regional office in an effort to trim costs.

The reorganization is the first significant move to address the service's financial woes by new Postmaster General Patrick Donahoe. Donahoe took over from John Potter, who retired in early December.

The number of VP-level officers will be reduced from 44 to 37, according to USPS. Also to be eliminated is the Memphis, Tenn.-based Southeast regional office, which has 119 employees.

The Postal Service lost $8.5 billion in its 2010 fiscal year, which ended Sept. 30. Donahoe has said the announced reorganization is part of his attempt to cut $750 million in Postal Service expenses.

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