The United States Postal Service (USPS) is losing $25 million dollars per day. What can it do to cut costs?
Well, officials hope that cutting Saturday delivery will be a good start.
After losing $16 billion in 2012, the postmaster general is expected to announce on Wednesday that the USPS plans to cut Saturday delivery of first-class mail by this summer, according to CBS News. Mail has been delivered on Saturdays for the past 150 years.
The cuts would only impact first-class mail deliveries. Packages, mail-order medicines, and priority & express mail would still get delivered on weekends.
Senator Tom Coburn (R-Oklahoma) says the move will save the USPS about $2 billion per year.
“It’s a proper business decision and (in the) long run, good for the Postal Service and good for Americans,” Coburn said.
Patrick Donahoe, postmaster general and CEO, says market research shows that almost 7 in 10 Americans support Saturday cuts in order to save the Postal Service some money.
“The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America’s changing mailing habits,” Donahoe said in a statement. “We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings.”
The USPS will make the announcement on Wednesday, a good six months prior to the cuts taking effect, in order to give customers plenty of advance notice.
“The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation,” Donahoe said. “The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail.”
Will the Saturday cuts be enough, or should we soon expect to only receive mail three days a week? Only time will tell.
More in the video below.