The US Postal Service (USPS) lost $3.1 billion dollars. That's in one quarter, the last one. Ugh.
The U.S. Postal Service posted a net loss of $3.1 billion in its third quarter and warned again it would default on payments to the federal government if Congress did not step in.
Total mail volume for the quarter that ended June 30 fell to 39.8 billion pieces, a 2.6 percent drop from the same period a year earlier, as consumers turn to email and pay bills online.
The mail carrier, which does not get taxpayer funds, has struggled to overhaul its business as mail volumes fall. It has said personnel costs weigh heavily and is facing a massive retiree health benefit prepayment next month.
"We are experiencing a severe cash crisis and are unable to continue to maintain the aggressive prepayment schedule," Joseph Corbett, the agency's chief financial officer, said in a statement.
"Without changes in the law, the Postal Service will be unable to make the $5.5 billion mandated prepayment due in September."
Does the USPS want to survive? Well, then drop your personnel costs dramatically. Deliver mail only twice or thrice weekly, and cut your bloated carrier staff. And reform your pensions. Act like a private company - you know, one that doesn't get taxpayer funds - by going to defined contribution pensions and reforming the retiree health plan.
Technology changes everything. The Pony Express isn't still in business.
