The United States Post Office lost 2.4 billion dollars in the last fiscal quarter and the Postal Service predicts a $7 billion total loss for the year, The New York Times reports. Last year, the Postal Service experienced a 9 billion-piece drop in volume of mail handled, which corresponded to a $2.8 billion loss. The Service predicts a 27 billion piece drop in mail handled in 2009.

The Postal Service will be unable to make legally required payments to a fund for future retirees. Last week, the Senate Homeland Security Committee approved a bill that would temporarily relief the Postal Service of its commitment and give the organization more borrowing authority. Looking to the long term, Postmaster General John E. Potter reccomends cutting back to weekday-only delivery, which he says would save over $3 billion annually. He also recommends closing some facilities.

Senator Thomas Carper (D-DE) told the Times, “Often Congress puts up roadblocks whenever the Postal Service mentions that it might be time to close or consolidate some facilities,” Mr. Carper said. “We just can’t afford to do that anymore.”However, Carper also said that the senate had not ruled out cutting back to a five-day week.

Regardless, something has to change. The Postal Service predicts continued drastic decreases in the pieces of mail it carries, and as long as that continues, so will the massive monetary loss. So maybe the way of the near future will exclude Saturday mail delivery. If it will save $3 billion, what can’t wait til Monday that can’t be sent electronically?

Popularity: 1% [?]