WASHINGTON, Aug 25 (Reuters) – The U.S. Postal Service offered cash incentives on Tuesday in a bid to cut its workforce by up to 30,000 people by the end of September and save up to $500 million next year.
The Postal Service said it is seeking voluntary resignations and early retirements as advances in mail processing technology and a falloff in business due to recession have accelerated cost-cutting efforts and reduced personnel needs.
Management negotiated an agreement with two of its unions to offer certain employees $15,000 to retire or resign before the end of the fiscal year. Most of the buyout would be paid in fiscal year 2010 with another payment in 2011.