US Postal Service Reports $8.5 Billion 2010 Loss
US Postal Service Reports $8.5 Billion 2010
Loss
The United States Postal Service (USPS), despite a slew cost-cutting efforts and a significant reduction in payroll, more than doubled its financial losses in fiscal year 2010. USPS net losses for the fiscal year ended September 30th was reportedly $8.5 billion, compared to a loss of just $3.8 billion in fiscal 2009.
The losses were blamed primarily on the recession and Americans' growing use of email. A change in the interest rates affecting USPS workers' compensation liability also had an impact, sources said.
USPS Chief Financial Officer Joe Corbett said that losses are getting worse despite cuts that have saved the company $9 billion over the last two years. The majority of those savings came from cutting 105,000 full-time employees, which Corbett said was more job cuts than any other company in the world.
Overall volume of US Mail has been steadily dropping for years, as more and more communications go electronic. The Postal Service delivered 170.6 billion individual pieces of mail in fiscal 2010, compared to 176.7 billion pieces in the year prior. That decline represents a loss of about $1 billion in revenue for USPS.
USPS has for several years now been asking Congress to allow the agency to scale back to a five-day delivery schedule, and to discontinue the unique rule that requires USPS to pre-fund its retirement plan, a rule that does not apply to any other federal agency. Congress has yet to act on these requests.
The United States Postal Service (USPS), despite a slew cost-cutting efforts and a significant reduction in payroll, more than doubled its financial losses in fiscal year 2010. USPS net losses for the fiscal year ended September 30th was reportedly $8.5 billion, compared to a loss of just $3.8 billion in fiscal 2009.
The losses were blamed primarily on the recession and Americans' growing use of email. A change in the interest rates affecting USPS workers' compensation liability also had an impact, sources said.
USPS Chief Financial Officer Joe Corbett said that losses are getting worse despite cuts that have saved the company $9 billion over the last two years. The majority of those savings came from cutting 105,000 full-time employees, which Corbett said was more job cuts than any other company in the world.
Overall volume of US Mail has been steadily dropping for years, as more and more communications go electronic. The Postal Service delivered 170.6 billion individual pieces of mail in fiscal 2010, compared to 176.7 billion pieces in the year prior. That decline represents a loss of about $1 billion in revenue for USPS.
USPS has for several years now been asking Congress to allow the agency to scale back to a five-day delivery schedule, and to discontinue the unique rule that requires USPS to pre-fund its retirement plan, a rule that does not apply to any other federal agency. Congress has yet to act on these requests.
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