Postal Service Wants to Cut 120K Jobs It also aims to exit federal health, retirement plans By Matt Cantor, Newser User Posted Aug 11, 2011 5:37 PM CDT 49 comments Comments Boxes await pickup at the post office in Caratunk, Maine, Thursday, July 28, 2011. (AP Photo/Robert F. Bukaty) (Newser) – The US Postal Service is looking to cut 120,000 jobs—20% of its workforce—and pull its workers out of federal health and retirement plans, reports the Washington Post. USPS would replace those benefits plans with new ones of its own. The proposal, which would include layoffs currently banned by union contracts, requires the approval of Congress. “We will be insolvent next month due to significant declines in mail volume and retiree health benefit prefunding costs imposed by Congress,” the organization told employees. “We do not make this request lightly,” USPS said of the proposal to Congress. “However, exceptional circumstances require exceptional remedies.” It says it must cut the 120,000 career jobs by 2015, a move that “collective bargaining agreements” render impossible; thus “a legislative change is needed.” The head of the American Postal Workers Union says its members “vehemently oppose any attempt to destroy the collective bargaining rights of postal employees.” Congress’ reaction to the proposal remains unclear. Click to read about predictions of getting mail only three days a week.