The $1.9 billion quarterly loss was up from the previous quarter, when the Postal Service lost $1.3 billion. But compared to the same period last year, its quarterly loss shrank by about 40 percent. The agency lost $3.2 billion in the second quarter of last year. The majority of the $1.9 billion loss during this latest quarter could be attributed to prefunding the retiree health benefits program, which cost the Postal Service $1.4 billion.
Lawmakers can make modest reforms to the Postal Service soon or be left with only severe options later, Postmaster General Patrick Donahoe said April 19. By the end of 2017, taxpayers might have to spend $58 billion to prop up the Postal Service as its debts accumulate, he said.
The U.S. Postal Service needs to cut Saturday delivery, revise its employee healthcare plan and give more power to the board of governors to be financially sustainable, Postmaster General Patrick R. Donahoe said in an April 17 House Oversight and Government Reform Committee hearing . This comes just a week after USPS backed off its fight for a modified 5-day delivery schedule that was set to start in August and would save USPS $2 billion annually, Donahoe said.
Speculation about widespread layoffs if the Postal Service ends Saturday letter delivery is unfounded, Postmaster General Patrick Donahoe said in his State of the Postal Service address April 3. He also dismissed the notion that if the Postal Service switches to 5 day delivery, 4 day delivery would follow, then 3 day and so on.
Congress ultimately has the authority to allow or deny a 5-day letter delivery schedule for the Postal Service, Postmaster General Patrick Donahoe's acknowledged during a Feb. 13 Senate hearing . "Please do not force us back into a 6 day window," Donahoe pleaded with the Senate Homeland Security and Government Affairs Committee.
The Postal Service ended the first quarter of fiscal 2013 with a $1.3 billion loss and its Board of Governors called for the service to accelerate proposed cost cutting measures. Postmaster General Patrick Donahoe said the service will aggressively pursue cost cutting measures including a planned 5-day delivery schedule for mail, which he expects will save $2 billion annually.
Postmaster General Patrick Donahoe says the Postal Service does not need Congressional approval to discontinue Saturday mail delivery and the 5-day delivery schedule will start in August 2013. Donahoe says package delivery services will stay on a 6-day schedule and post offices will remain open on Saturdays.
The Postal Service will undertake cost saving measures and service changes in 2013 to increase available revenue, says Postmaster General Patrick Donahoe.In his State of the Postal Service presentation, Donahoe said on Jan. 24 the service remains "in a very tenuous position as far as cash on hand" because Congress has not passed legislation to aid the Postal Service.
More than 25,000 employees have accepted an early-retirement offer from the United States Postal Service, part of the agency's attempts to cut its workforce and costs, said a spokesperson for the American Postal Workers Union. The Postal Service finished fiscal 2012 with a $15.9 billion loss .
All the Postal Service needs to do to right its ship is reduce the prepayments it makes to a retiree healthcare fund and eliminate Saturday general mail deliveries, says Postmaster General Patrick Donahoe. "I think most people don't realize we're 100 percent self-sufficient," said Donahoe.