The net loss after the end of the previous years has almost increased exponentially. Last year the US Postal Service suffered a $3.8 billion net loss, last month it was up to $8.5 billion at the end of their fiscal year in September.
The Postal Service puts the blame on the bad economy and the continuing growth of email.
Chief Financial Officer Joe Corbett said the losses were worsening despite cuts that generated cost savings of $9 billion over the past two years. Those savings came primarily from the elimination of 105,000 full-time positions -- "more than any other organization, anywhere," Corbett said.
The volume of mail each person receives continues to drop as more communications go electronic. The Postal Service delivered 170.6 billion pieces in its 2010 fiscal year, compared to 176.7 billion pieces the prior year.
"We will continue our relentless efforts to innovate and improve efficiency," Corbett said. "However, the need for changes to legislation, regulations and labor contracts has never been more obvious."
I believe they need to downsize this agency, along with many other government agencies. The US Postal Service is designed for a good-sized amount of people dependent on physical mail, but nowadays it's quite the opposite, even my old grandfather uses e-mail and billpay, and hardly has to send a letter except for holidays, where I too still send holiday cards.
As far as everything else goes, they need to downsize, cut workers, cut delivery days, cut worker benefits...etc.