USPS offer employee resignation incentive

USPS is offering thousands of employees cash incentives to retire or resign by the end of this fiscal year. The latest cost-cutting move by the Postal Service could save it up to $500m next year.

The incentive package, negotiated with unions, would give eligible employees $10,000 during the first quarter of fiscal year 2010, and another $5,000 during the first quarter of fiscal 2011. As many as 30,000 employees are eligible, the Postal Service says.

The offer is not being made to letter carriers. The majority of those eligible work at mail processing facilities.

The Postal Service is aiming to cut $6bn in expenses this fiscal year by closing offices, halting new construction and cutting jobs.

The General Accounting Office recently added the Postal Service to its list of high-risk federal areas in need of change.