U.S. Postal Service Reports $1.9 Billion Loss for Quarter
The United States Postal Service reported it's second quarterly loss for the year on Friday, saying in a statement that the agency lost $1.9 billion in the second quarter of 2013. The USPS posted a $1.3 billion loss for the first quarter this year.
While that combined $3.2 billion loss over six months is high, it is an improvement for the long-suffering service—the USPS lost that same amount, $3.2 billion, in one quarter last year. Full year losses in 2012 reached a record $15.9 billion.
The postal service has made several proposals in order to stem its losses, including offering employee buyouts, closing and consolidating locations, and ending Saturday mail delivery. Any changes to the postal service's operations require approval from Congress, and so far, most of the suggestions have been rejected.
In order to pay back numerous loans and keep from collapsing, the USPS needs to somehow save $20 billion annually by 2016. To that effect, the agency has proposed a five-year business plan (PDF) that it claims will help to repair the service. Many of the proposals are not new, and include changing to a five-day delivery schedule, allowing the USPS greater control over its products and services, and changing the retiree health care package that it is required to pay annually.
"The plan provides an achievable roadmap to restore financial stability and preserve affordable mail service for the American public," said Postmaster General and CEO Patrick Donahoe. "The major elements of the plan must be pursued and executed within a short window of opportunity to avoid unsustainable losses and potentially becoming a long-term burden to the American taxpayer."
More information on the postal service's quarterly report is available on USPS.com.