Cash-Strapped USPS Seeking Aid
WASHINGTON, DC—Days after announcing cost-cutting initiatives designed to save more than $100 million a year, Postmaster General John Potter told a House subcommittee that without aid, the U.S. Postal Service will run out of money this year. The USPS lost $2.8 billion in 2008 and stands to fall deeper into the red this year, its business exacerbated by the weak economy and a drastic decline in mail volume.
On March 20, the USPS announced it was closing six of its 80 district offices. Nearly 150,000 employees nationwide are being given the opportunity to take an early retirement. Administrative staff positions are being cut by 15 percent and more than 1,400 mail processing, supervisor and management positions at about 400 facilities around the country are being eliminated.
According to the Associated Press, Potter told the subcommittee that the USPS is "facing losses of historic proportion. Our situation is critical." Potter said he would ensure that salaries are paid, but noted some bills may have to wait.