11:53 am February 8, 2013, by Christopher Seward
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Maybe Saturday isn’t the only delivery day that needs to be considered by the U.S. Postal Service?
Days after the federal agency announced it was discontinuing Saturday deliveries to cut costs, its chief financial officer told the Postal Service Board of Governors that USPS lost $1.3 billion – about $14 million a day – in its first quarter. The good news is that the loss October to December was much smaller than the $3.3 billion in red ink during the same period a year ago.
The most recent first quarter was helped by extra mailings due to the November elections and Christmas holiday season, Reuters reported. Competition from UPS, FedEx and other shippers, and consumers’ increasing reliance on email and other online options, have greatly loosened the grip the USPS once had on mail deliveries. The agency also struggles with high retiree healthcare costs.
Cutting back to five days a week will save the agency $2 billion a year, the USPS estimates. The halt to first-class mail deliveries on Saturday begins the first week of August. USPS lost almost $16 billion in its last fiscal year.
What other steps can the USPS take to slow the red ink?
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