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TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE). Press Event February 6, 2013. Subtitle (20pt. Arial, Bold, Title Case). FOOTER (10PT. ARIAL, BOLD, GREY, CAPS). Today’s Announcement. New Delivery Schedule. Adapting to America’s Changing Mailing Habits. - PowerPoint PPT Presentation
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FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)
TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE)
Subtitle
(20pt. Arial, Bold, Title Case)Press Event
February 6, 2013
2
Today’s AnnouncementNew Delivery Schedule
3
Adapting to America’s Changing Mailing Habits
Volume in Billions of Pieces
0.0
10.0
20.0
30.0
40.0
2007 2008 2009 2010 2011 2012
37% Decrease since 2007
First-Class, Single-Piece Volumes
4
$15.9B loss in FY2012
$11.1B default in FY2012 to the United States Treasury for Retiree Health Benefits
$15B borrowing authority exhausted
Liquidity very low
Ongoing Financial Challenges
5
Reduced career workforce by 193,000 positions – without layoffs
Reduced annual cost base by $15B
Consolidated more than 200 mail processing facilities
Aggressive Cost Reduction Since 2006
6
Changes to Mail Delivery
New Delivery Schedule •Six Days of Package Delivery •Five Days of Mail Delivery•Begins the week of August 5, 2013
6
7
New Delivery Schedule Components
Mail Delivery
•Monday – Friday mail delivery service
Package Delivery
•Monday – Saturday package delivery service continues
Post Offices (P.O.)
•Post Offices remain open on Saturdays
•Mail delivered to P.O. Boxes on Saturdays
8
Package Business Growth
Rising Demand for Package Delivery Driven by eCommerce Growth
9Sources: Gallup Poll, March 26, 2010 ● New York Times/CBS News, June 27, 2012 ● USA Today, March 17, 2010 ● Washington Post, March 30, 2010
Seven out of Ten Americans Support a Five-Day Mail and Package Delivery Schedule
Higher support likely with six days of package delivery
Survey Research: Five-Day Mail Delivery
10
Preparation and Timing
Our Commitment
11
Approximately $2B in annual cost reduction
Reduction of approximately 45 million Work hours annually
New Delivery Schedule: Projected Cost Reduction
12
Timeline
Feb Mar Apr May June July Aug
March - AugustCustomer communication
Week of August 5Implementation of new delivery scheduleMarch
Release detailed implementation plan
March - AugustWebinars/outreach with business mailers
Feb. 6 Initial notification of new delivery schedule
13
ConclusionConclusion
FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)
TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE)
Subtitle
(20pt. Arial, Bold, Title Case)