USPS Reviewing Solutions to Reduce Costs, Expand Services

The United States Postal Service (USPS) has recently been put under pressure to improve its financial outlook without compromising its services, a directive that comes on the heels of the USPS’s reported loss of $1.5 billion for the first quarter of the fiscal year 2019. This figure represents an almost $1 billion increase from the same financial period last year. The USPS has also experienced slower growth in its package delivery business, where it continues to compete with private delivery services.

In 2018, the postal service reported a financial loss for the 12th year straight, with net losses widening from $2.7 billion in 2017 to almost $4 billion in 2018. One of the USPS’s most profitable products, first-class mail, continues to experience a rapid decline, with a 41% decrease in overall volume since 2007. These figures continue to worsen despite a 5.4% increase in package deliveries during the first quarter of 2019 (an equivalent of nearly 100 million packages).

Behind the Decline

While the USPS downturn has been worsening for more than a decade, their most significant losses occurred due to the passage the Postal Accountability and Enhancement Act 2006, which resulted in the payment of higher retiree health benefits. It is estimated that the USPS’s health benefits expenditures range between $5.4-$5.8 billion annually.

These financial losses are further compounded by rising employing salaries and higher transportation-related costs including the rising price of gas and growing vehicle maintenance costs.

While package deliveries from online retail giants, such as Amazon, have become a vital part of the USPS’s business, such deliveries are not enough to offset their rapid decline in profits.


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The Postal Service compromised their delivery standards last year when the first class committment went from 1-2 days to 4-5 says. And they didn’t even reduce the price to customers.

Save money? When they have supervisors that have less than a week in the service and are promoted to “204B status” and not even career and have no idea how the mail flows or even works, that is an issue. Especially, when they do get promoted to full supervision and still have no idea how it works because all they know and rely upon is what their bosses tell them to do. When they become the boss, then all they do is look at moving up the ladder without any regard as to how to actually perform the job they… Read more »

The real cuts should come at the district office level. We get blasted with so many ridiculous and irrelevant emails daily. Huge waste of time for us and them, because nothing gets communicated to us in a timely manner. Hire a true computer programming company to create one program that spits out a report card for each post office daily and you don’t need so many people at the district office doing this. Squeeze that level for a while. USPS has squeezed the crafts in the trenches long enough.

I love your comment….it is so true! However, if they did what you suggest, they would lose all those six figure a year jobs. All those district people that sit around all day on teleconferences and typing those “ridiculous and irrelevant emails” would no longer be able to justify their existence. Headquarters would eliminate their jobs and then turn around and create a new position for that same person with a higher salary and better perks. It’s horribly wrong!

Maybe we need to go back to the manuals and work the mail the way its supposed to be the FIRST TIME. working the mail 2-10 times doesn’t pay. Having mailing come through that are not properly prepared ( ie backward sequenced) or having the plants throw sequenced mailings on the flat sorters then carriers have to case everything. What about all the extra services that we provide for FREE??? Forwards, holds, returns, and most of these are abused over and over. Hey maybe we should actually cancel postage on letters, flats and pkgs so everyone doesn’t reuse them over… Read more »

4 replies so far that speak the TRUTH !!
But you will never be asked on how to fix the problems as ‘they’ know better…

Boy is that the truth!!!!!!!!!!!! Maybe if they asked some of us “grunts” that work our butts off how to fix things they would actually make some financial progress. Our office has an OIC and a clerk (or whatever she is) Comes in at 8:30 fills a few stamp orders, processes the parcels us carriers brought in the day before and then sits and watches videos on her phone till she gets a customer which averages about 1 every half hour. And she gets paid more than I do and I work 10 times as hard as she does. But… Read more »

Another cut would be postmaster in these small offices and put in a clerk who knows more!!!!! Like or office! PM shoes up at 10am leaves by 2,, makes one clerk break doesn’t mail, anwser phone, wait on customers and them wonders why still work when she decides to show up….. Oh wait she will be promoted,,,,

” Rising employee salaries???????????? Are you freaking kidding??? I don’t remember the last time I’ve seen COLA or a raise on my check. I’m sure the salaries have risen for the big shots who sit on their asses making stupid financial decisions and handing us more work all the time. Oh boy, does this crap just set my teeth on edge. I could go on and on but it just doesn’t matter anymore and it’s not worth the wasted breath. It is no longer a fun job or a job to be proud of.

amazing…amazon…wtf ?? work the WHOLE rt…5-6 hrs del time plus casing/pulling/get over 100 parcels in some kind order…then RETURN to 30-50 to?? parcels that MUST be delivered. Its 400ish pm and I now have to sort parcels and walk to 10 doors and put 32 parcels in mailboxes….for.. 2 min a mile . The 14 miles just took me 1 hour…so I am now getting paid 28 min of OT…even though it took 60 min. And UNLIKE many..I am NOT driving around crazy. and the BEST part?? the PVI say they are due..THE NEXT DAY !! We have 11 rts… Read more »