What % Of Us Postal Service Is Lost Each Year?
NEW YORK (CNNMoney.com) -- The U.Due south. Mail service reported a $3.8 billion loss in the 2009 fiscal year, and plans to suggest to Congress in 2010 that information technology drop Saturday delivery.
The agency already reduced expenses by $half dozen billion during the year ended Sept. xxx.
Those measures included eliminating 40,000 jobs, even so the greenbacks-strapped agency nonetheless employs over 712,000 people. The Postal service as well reduced overtime hours and lowered transportation-related costs.
Additionally, the USPS lowered the payments it made for retiree health benefits by $four billion in fiscal 2009.
"To say this was a difficult year might be a bit of an understatement," said the USPS primary financial officer Joseph Corbett, on a briefing telephone call with the media. Corbett blamed the agency's difficulties on the recession and "the continued migration [of customers] to electronic ways."
Big changes
Corbett too said on the call that the Postal service Function will formally propose to Congress that it drop Saturday delivery. "We need more than flexibility in our delivery schedule. Nosotros've talked a number of times almost reducing from half dozen to 5 days of service," he said.
That move alone would save $3.5 billion. But even a 5-day delivery schedule won't be enough to put the USPS into the black, Corbett said. So the agency will as well advise to Congress that information technology reduce the $5.5 billion in annual payments to pre-fund retiree wellness benefits that it is slated to brand until 2016.
Ongoing losses
This is the third twelvemonth in a row that the agency has posted a loss; it lost $2.8 billion in fiscal 2008, and $5 billion in 2007. The USPS is a self-supporting government bureau that receives no tax dollars. It relies solely on the auction of postage stamp and products and services to generate sales.
The Mail service reported operating acquirement of $68.i billion, down ix% from last year, while its operating expenses fell to $71.8 billion, downward 7% from 2008.
The service'due south total postal service volume plunged by more than than 25 billion pieces, or 12.vii%, to 177.one billion pieces. That drop was twice as much as whatever postal service volume decline in the Mail service's history.
There is a potent correlation between unemployment and mail volume, co-ordinate to Corbett, which means that mail volumes will go on to reject every bit the unemployment rate climbs.
What % Of Us Postal Service Is Lost Each Year?,
Source: https://money.cnn.com/2009/11/16/news/companies/US_postal_service/
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