Postal Service says ‘Flawed business model’ to blame for first-quarter loss

Revenue from its shipping and package business increased by $505 million, or 9.3 percent, during the quarter. USPS has averaged double-digit growth in package growth over the last three years.

“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.


Get the news sent straight to your inbox. Please remember, this list sends an email every weekday, so if you are not a news junkie, then this might not be the list for you. Thanks

Thank you for subscribing.

Something went wrong.

Join the Conversation

11 Comment threads
0 Thread replies
Most reacted comment
Hottest comment thread
8 Comment authors
newest oldest most voted
Notify of
James Carey

More like flawed management model

Colleen Daves

Lol, excuses excuses …It’s called Having too many idiots with NO BUSINESS sense running the place. Never seen the PO so poorly managed. Customer service out the window, forward mail sitting in offices for weeks, then processed wrong, back in Office for another week, and round and round we go. Hot Case Mail not being worked for weeks, Can’t fire anyone, even when caught throwing away hundreds of dollars worth of EDD and and Deliverable Mail, because HR says they didn’t get the information. Now paying two months of back pay, for a person caught Throwing $$$. Trucks not being… Read more »

Stephanie Kemp-Ellis

I’d like to see a breakdown of how much they’re losing in turnover because I bet that’s their biggest money waster. I mean I got paid $3000 just for training. That doesn’t include my reimbursement for having to have a hotel during orientation and mileage to courses. It also doesn’t include the amount my instructors were paid or the extra they had to pay my regular for nearly a year of having to work her x day every week until they hired me.

Stephanie Kemp-Ellis

It would probably benefit USPS substantially to start giving a shit about their employees.

Matt Headley

Key phrase: “Where we have the authority, we have taken actions”

Lisa Lewis

I do think maybe there are a lot of injury workmans comp because of the increase in parcels I scan almost 900 a week

Mulloy Blackwell

well said

Don Muraco


Jayne Sly

Horrible micromanaging, unreasonable and unethical

Jayne Sly

Was doing 200+ a day…oh 2080 issues…worked like a dog, got tendonitis in foot from all the in/out. Done!

Send this to a friend