News

In a recent news media statement, the U.S. Postal Service said that the 2008 fiscal year (Oct. 1, 2007-Sept. 30, 2008) had concluded with a net loss of $2.8 billion as the national economic slowdown lowered mail volume and as the Postal Service bore additional costs mandated by the Postal Act of 2006. The loss occurred despite more than $2 billion in cost-cutting measures that included the use of 50 million fewer work hours compared to the previous year. The Postal Service continued to improve national on-time First-Class Mail delivery performance, reaching record highs in FY 2008.

Mail volume in FY 2008 totalled 202.7 billion pieces, a decline of 9.5 billion pieces, or 4.5 percent, compared to the previous fiscal year. Declining mail volume was a symptom of the worsening national economy, particularly related to the financial and housing industries and to trends toward the use of electronic mail.

Total revenue in FY 2008 was $75 billion, unchanged from last year. Expenses totalled $77.8 billion.



In their statement USPS management said; “We expect the new fiscal year to be another difficult one for the Postal Service and the entire mailing industry, as economic factors will continue to reduce mail volume and increase expenses,” Postmaster General John Potter told the Postal Service Board of Governors. “As we continue to reduce work hours and other costs, our top priority remains providing excellent service to our customers. The combination of excellent service and affordable prices makes Postal products a great value.”



In another news story released the same day, the USPS said that reports that they were laying off 40,000 employees were not true. "The Postal Service is not laying off employees. Efforts to match our work force to a reduced workload are focused on voluntary early retirements. Voluntary early retirement has been offered to a number of employees and to date, 3,685 employees have accepted the offer."