USPS Loses $3.3 Billion, Warns of Cash Drain by October

The U.S. Postal Service said it lost $3.3 billion in the quarter ended Dec. 31—typically its strongest—and that it expects to run out of cash in October unless Congress agrees to cuts in facilities and employees.

"If the Postal Service is unable to reduce its operating costs by $20 billion a year by 2015, we may not be able to return to profitability," Postmaster General Patrick Donahoe said at a board meeting in Washington today. "We may become a long-term burden to the taxpayers if we are not able to make these reductions quickly."