USPS Reports $2.8 Billion Loss for 2008
WASHINGTON, DC—With mail volumes continuing to dwindle and added costs mandated by the Postal Act of 2006, the U.S. Postal Service (USPS) finished its 2008 fiscal year with a net loss of $2.8 billion. The loss came despite cost-cutting measures in excess of $2 billion, including 50 million fewer work hours. However, mail volume plummeted by 9.5 billion pieces to 202.7 billion, a decline of 4.5 percent compared to 2007.
The USPS also cited the weak national economy and the use of electronic mail as reasons for the decline.
“We expect the new fiscal year to be another difficult one for the Postal Service and the entire mailing industry, as economic factors will continue to reduce mail volume and increase expenses,” Postmaster General John Potter told the Postal Service Board of Governors. “As we continue to reduce work hours and other costs, our top priority remains providing excellent service to our customers.”
Total revenue in fiscal year 2008 was $75 billion, unchanged from 2007.