US Postal Service offers buyouts to reduce staff

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.

Reporting by John Crawley