Postal Service looks for new ways to cut losses
By Randolph E. Schmid, Associated Press March 23, 2009
WASHINGTON (AP) - The U.S. Postal Service has already suggested dropping a day of mail delivery to save money. Now, with economic gloom everywhere, it's turning to early retirements, management cutbacks and office closings.
Not so long ago, the picture was far different. The USPS finished fiscal 2005 with a $1.4 billion surplus.
Postal officials were already struggling with a sharp decline in first-class mail as letters and many bills moved to the Internet. Then the flagging economy devastated advertising mail, which had become the agency's largest volume. At the same time, the number of delivery points - homes and offices where it must bring mail, was continuing to increase.
The Postal Service lost $2.8 billion last year and is facing even larger losses this year, despite a rate increase - to 44 cents for first-class mail - scheduled to take effect May 11.
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