The U.S. Postal Service today announced it will not close its mail processing and distribution facility in Fayetteville.
The plant, located at 2300 South City Lake Road, employs about 90 people and processes mail sent and received for all ZIP codes beginning in 727 or 726.
The news comes with the release of the results of a five-month-long study into which facilities the agency should consolidate as part of its ongoing efforts to cut $20 billion in costs by 2015 to return the organization to profitability.
According to reports, the Postal Service’s most recent quarterly loss was $3.3 billion.
The full list of site results released on Thursday shows that two Arkansas mail processing centers will be closed — one in Hot Springs and another in Jonesboro — while some work in Harrison will be moved to Fayetteville.
The Postal Service said it will move Hot Springs operations to Little Rock and Jonesboro operations to Memphis.
“Since 2006, First-Class Mail volume has rapidly declined, leaving a mail mix that generates far less revenue than it costs to sustain postal operations,” agency officials said in a news announcement. “The dramatic decline in mail volume has resulted in an enormous amount of excess capacity within the network, creating significant opportunity for consolidation.”
Timing for the closures has not yet been set, but the organization has said that no moves would occur until after May 15.