The U.S. Postal Service reported an annual loss of $5.1 billion on Tuesday, as declining mail volumes and mounting benefit costs take their toll on the agency.
The Postal Service said in a statement that its losses would have been roughly $10.6 billion if Congress had not passed legislation postponing a $5.5 billion payment required to fund the agency's 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.
Over the past few months, the White House, lawmakers and the Postal Service have all come up with plans to save the post office. One of the more controversial proposals came from the postal agency itself, which included cutting Saturday service,FULL STORY