USPS cuts Saturday mail delivery
But is the move too little too late for the cash-strapped agency?
The U.S. Postal Service has delivered a message that should surprise few people: Saturday mail delivery is coming to an end.
The USPS will curtail the service effective Aug. 5, expecting to save $2 billion annually. Sadly, that won't be enough to address its financial woes. The service lost $15.9 billion in the last fiscal year, three times its loss from a year earlier.
"It's a responsible decision. It makes common sense," said Postmaster General Patrick Donahoe, according to CNN.
Package delivery, which is profitable, will continue on Saturdays. The move would affect 22,500 jobs, and Donahoe says he can achieve it without layoffs.
The USPS has sought to end six-day delivery for years, though some have argued that it would harm residents in rural areas. Credit card and insurance companies have said that they need Saturday delivery because they need to notify their customers frequently.
One postal union denounced the move as short-sighted.
"USPS executives cannot save the Postal Service by tearing it apart," according to a statement from the American Postal Workers Union. "These across-the-board cutbacks will weaken the nation’s mail system and put it on a path to privatization."
There are many reasons for the service's fiscal mess. Congress has mandated that the USPS pre-fund 75 years of its retiree health care costs, an expense that is expected to top $100 billion by the end of the decade. The burden, which no other public or private sector employer faces, is crushing the USPS, which defaulted last year on more than $10 billion in payments needed for future retiree health costs. Some USPS critics, though, have argued that the prepayment issue is overblown.
Indeed, demand for mail service has plummeted for years. First-class mail volumes have fallen as more consumers pay bills online and send messages over email. Fewer than half of the nation's 32,000 post offices are profitable because demand from customers has fallen. The USPS is slashing the number of mail processing centers by more than 50% by 2014.
Ironically, the USPS has recently touted that it was named the most trusted government agency for the for the seventh year in a survey by Ponemon Institute. It would be interesting to see how USPS would fare in light of Wednesday's announcement.
Follow Jonathan Berr on Twitter @jdberr.
More on moneyNOW
- Texas Gov. Rick Perry poaches California businesses
Now it`s time for the far right to blame this on Obama.Most Obama haters can`t even spell
iranian leader in EGYPT; last week reports of 20 F16 and abram tanks sold to egypt and billion's given to egypt to buy those planes and tank's.......
can't wait for communist propaganda B.S. coming from israel when the communist n racist community divider visits for first time this spring!
billions given to pakistan and now this:
ZZZZZZZZZZZZZZZZZZZZZZZZZZZ snore ZZZZZZZZZZZZZsnoreZZZZZZZZZZZZ
will anyone wake up for the future of the nation??? GOP'ers complaining about Oh'bomination and nothing NOTHING being done to remove him; ten impeachable offenses and it's "lets dance around the tulip's!
"GOD" DAMN AMERICA.......
AND HE HAS!
IT ONLY GETS WORSE!! remember now, you refraudulated this communist n racist community divider!
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
While incompetent bosses like Michael Scott and Andy Bernard typically can’t survive in the workplace, office romances are a very real part of corporate culture.
- Southwest Airlines turns less legroom into $773M
- 'American Idol' gets sorry ratings for season finale
- Powerball's wacky sense of humor
- Millions of Facebook's users are actually pets
- Can crowd funding rescue the LA Times?
- Domino's debuts a DVD that smells like pizza
- Average US retirement age climbs to 61
- McDonald's aims to slim down its 145-item menu
- Bathroom reading goes digital with iPad TP stand
[BRIEFING.COM] The S&P 500 ended this week with a bang, roaring to a new all-time high on the back of stronger-than-expected economic data, influential leadership, and an ongoing appreciation for the Fed's monetary policy support.
The bullish bias was evident in premarket action as the S&P futures pointed to a higher start without the benefit of any definitive news catalyst. Stocks indeed benefited from a blast of buying interest at the opening bell on this ... More
More Market News
All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.