“Although we continue to win customers and grow our package business, these gains are not sufficient to offset continuing declines in our mail business,” Postmaster General Megan Brennan said during a conference call Friday announcing the quarterly finances.
USPS reported a $2 billion, or 11 percent, increase in its operating expenses for the quarter, which were driven by a $1.4 billion increase in worker’s compensation brought on by rising interest rates. The rising operating costs also included a $293 million increase in unfunded retirement benefit costs and a $210 million increase retiree health benefits costs.
“We have not ignored the economic realities facing our business. To the contrary, we’ve dealt with our challenges head-on. Where we have the authority, we have taken actions to proactively adapt to changing market forces,” Brennan said.
Given the decline in mail, Brennan said USPS reduced the size of its workforce by 152,000 workers and reduced its overall real estate footprint by consolidating operations at more than 350 facilities, or 56 percent of its total real estate holdings.
David Partenheimer, a USPS spokesman, told Federal News Radio following the quarterly call that the workforce reductions were the result of ongoing attrition at the organization.
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