For the 12-month period ending in September, the U.S. Postal Service lost $15.9 billion. The loss was mainly due to required retiree benefit payments ($11.1 billion) and negative operating margins due to declining revenues ($4.8 billion). The USPS has also reached its borrowing limit. It was saved by the elections this month which brought in an extra $500 million from direct mail and other campaign-related services. Because of its status, fundamental changes to its business model require Congressional approval which has been slow in coming. The USPS wants to stop Saturday deliveries, change pricing and deliver beer and wine in an attempt to cut costs and find new revenues. So far, Congress has failed to act, putting into question the future of the Postal Service.
Learn more at The New York Times.
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