
S11E6: McKinsey Public Sector Case - Postal Operator Under Pressure
Strategy Simplified
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The Cost of Laying Off Mail Delivery Employees
Our total cost is, the level cost is $1 billion so okay 85% of that is going to be $800 and $50 million. So what we actually interested in is 90% of this $850 million which is the amount of the cost of the entire department dedicated to mailman. And then based on that I think we can come up with essentially our break even number using the only lever that we have which is laying off mail delivery employees. If my second to give you that number that out with 765 million in terms of the cost we spent on mailman labor just the little man. The revenue from the mail department would be the other piece of information that I've been trusting
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