Mon, May 28, 2012, 5:41 PM EDT - U.S. Markets closed for Memorial Day

Post office expects $18B annual loss without cuts

USPS says it faces annual losses of $18.2B without cuts to Saturday delivery, other changes

WASHINGTON (AP) -- The Postal Service is warning it will lose as much as $18.2 billion each year by 2015 if Congress doesn't give it leeway to eliminate Saturday mail delivery and make other service cuts.

In a letter to Congress, Postmaster General Patrick Donahoe describes a five-year business plan that reiterates the mail agency's proposals to switch to five-day delivery, close up to 252 mail-processing centers and 3,700 local post offices and slow delivery of first-class mail.

He says the proposals would allow the agency to save $20 billion a year by 2015 and repay its $12.9 billion debt to the Treasury.

In contrast, he says unless Congress acts soon, the Postal Service will incur significant annual losses and become a "long-term burden to the American taxpayer."

 

6 comments

  • There's No Other!  •  2 months ago
    A perfect example, of a single entity run by the government. Now apply this situation to everything they touch! $14 trillion in debt.

    Criminals that are fit for a four walled cell! This thing needs to be scaled way back, pay and benefits put in line, and bleed the retirement fund that is currently set up to fund retirements for the next 70 years. That is a surplus that is excessive and paid by you and me. It's also set up to fund people that are not even born yet. Balance it! Fund it with pay not additional taxes!
  • Doug  •  Seal Beach, California  •  2 months ago
    They should just go to every other day delivery. My mail carrier could do my neighborhood one day and another one the next day.
  • ohsobeau  •  Baltimore, Maryland  •  2 months ago
    The PMG's threat of a "long term burden to the American Taxpayer" shows that he feels that there will be no one, including the American People that will hold him accountable for his mismanagement of a once profitable and venerable organization. We should not take his threat in idle... We as a people must stand and say to him... "OK... You're out" and find someone who will operate the great institution with care and concern.
  • Al  •  3 months ago
    They already are a long term buden to the US taxpayer. How we deal with the USPS failures is just a preview of how we will deal with all of our huge funding problems...wait until it is so late that the whole thing comes down.
  • Paul  •  Santa Clara, California  •  3 months ago
    Poor supervision, unable to document problem employees, and fire them. Union defending people that are not doing the job and putting more work on other employee's
  • Dick  •  Bakersfield, California  •  3 months ago
    Stop hiring foreigners and losers. No more long hair/bearded freaks or other social misfits. The USPS , like the California DMV, has been a haven for social inbrebs that can't get along with others. Why hire these losers? Hire pleasant people that deserve a job and want one.
 
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