USPS Loses $8.5 Billion This Past Year
The number of people who state they never utilize postal “snail mail” has increased enormously as e-mail, text messaging, instant messaging and online social networking have all but extinguished the skill of letter writing . Combine this with the boom in the commercial package service industry, and also the financial implications for the United States of America USPS are grim, indeed. Thus, accounts MSNBC, the United States of America USPS is taking a look at an $8.5 billion decline, which is $4.7 more than the previous year. Even cutting over 100,000 jobs wasn’t enough.
Nobody uses the Postal Service when they can use the internet
Originally the U.S. Postal Service estimates were between $6 billion and $7 billion. This was for 2009. The economic recession has been bad since business mail has been cut down. Also, more and more people rely on electronic communication meaning there isn’t as much mail sent or received. This has brought advertising down. There is less money for the Postal Service this way. Hardly any money is made. Now it makes sense the USPS is hoping to drop Saturday service and hoping to have a postage rate boost.
Saving costs more than other organizations
Joe Corbett as the USPS CFO saved more than $9 billion. He only did this by cutting 105,000 full-time jobs from the industry. He said that USPS will work on “efficiency” when having cut “more than any organization, anywhere” for this. Of course, the organization is expected to follow legislation, regulation and labor contracts. The company can’t exist otherwise. The USPS and its unions are all negotiating labor contracts. These negotiations are expected to continue into 2011.
First-class mail being unused
The volume of personal letters and cards that pass through USPS hands has decreased, as have bill payments. Online paperless billing has played a significant role within the latter problem. For the last three years, from 2008 to 2010, there have been drops in first class mail of 4.8, 8.6, and 6.6 percent. Considering that first-class mail traditionally constitutes more than 50 percent of USPS revenue, the problem is apparent. Paperless billing is great since retailers and creditors will give discounts for it. The USPS will have a problem to face though. Now even Netflix has moved from exchange via the postal mail and to a streaming service. It seems like the only thing that could conserve the U.S. Postal Service now would be Congress (read: higher taxes).
Articles cited
MSNBC
msnbc.msn.com/id/40151593
long, painful death
youtube.com/watch?v=EGG96ma1UQc
