USPS Plans $1.1 Billion in Cost Cuts
WASHINGTON, DC—The Board of Governors for the U.S. Postal Service approved a financial plan for fiscal year 2007 that includes cost-cutting initiatives totaling $1.1 billion, including a decrease of 40 million workhours from the FY 2006 level.
The plan calls or a 3.2 percent increase in revenue and a 2.6 percent increase in expenses over the current year’s forecast, yielding $1.7 billion in net income. But the $3.3 billion escrow requirement leaves the USPS $1.6 billion in the red. The plan assumes slower growth in the U.S. economy and implementation of the planned postage price adjustments in May 2007.
The plan does not include effects from possible passage of postal reform legislation.