The agency reported an annual loss of $5.1 billion, as declining mail volumes and mounting benefit costs take their toll. The Postal Service said its losses would have been roughly $10.6 billion if not for the passage of legislation postponing a $5.5 billion payment required to fund retiree health benefits.
Revenues from First-Class Mail, the Postal Service’s largest and most profitable product, declined 6% from the previous fiscal year to $32 billion. Total mail volume declined by 3 billion pieces, or 1.7%.
“The continuing and inevitable electronic migration of First-Class Mail, which provides approximately 49 percent of our revenue, underscores the need to streamline our infrastructure and make changes to our business model,” Postal Service CFO Joe Corbett said in a statement accompanying the figures.
Last year’s losses hit $8.5 billion, despite deep cuts in expenses and staffing. Mail volume is down more than 20% over the past four years.
A really big challenge to turn the post office around for sure. Adafruit is in NYC near once of the biggest mail facilities in the world – for customers who choose USPS, this why our packages get to so many places so fast and we have a great relationship with our local post offices because of the volume we do. We do think that Saturday service might go soon in parts NYC, but that’s just a guess. It will be interesting to see how and if the postal service adapts and streamlines.