Reeling USPS Records $3.8B Loss for 2009

WASHINGTON, DC—Talk about an agency in need of reform again. The U.S. Postal Service (USPS) filed its 2009 fiscal year-end results earlier this week and showed a loss of $3.8 billion for the year, despite a cost-cutting campaign that resulted in $6 billion in savings and a $4 billion reduction in required payments for retiree health benefits.

The cost savings reflect a reduction of 40,000 career USPS employees as well as reductions in overtime hours, transportation and other costs. For the fiscal year, total mail volume declined by 25 billion pieces (12.7 percent) from 202.7 billion pieces to 177.1 billion pieces. The $3.8 billion loss exceeds the 2008 loss of $2.8 billion.

The $4 billion reduction in required retiree health benefit payments was passed into law for fiscal 2009 to allow USPS to maintain fiscal solvency while continuing to provide universal, affordable service to the nation.

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