Post office to cut Saturday deliveries

Hopes to save billions

Posted:

WASHINGTON, D.C. – In an effort to save $2 billion a year, the United States Postal Service said last week it will cut Saturday service beginning Aug. 5.

Package delivery would continue six days a week.

The move comes after the USPS lost a staggering $15.9 billion last year and defaulted on its retiree health plan.

“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,” said Patrick R. Donahoe, postmaster general and CEO. “We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings.”

Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages. However, recent strong growth in package delivery (14 percent volume increase since 2010) and projections of continued strong package growth throughout the coming decade led to the new plan.

Since 2006, the Postal Service has reduced its annual cost base by $15 billion, reduced the size of its career workforce by 193,000 (28 percent) and has consolidated more than 200 mail processing locations.

The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.