Because of the current economic downturn, the United States Postal Service is taking certain tough but necessary steps here in the St. Louis area and around the country. In order to maintain affordable service and remain viable, we’re making changes to operations, staffing, and facilities similar to what other businesses are doing in these tough economic times.
That perspective is important to keep in mind. The Postal Service is a self-supporting agency, funded entirely from the sale of postal products and services, not from tax dollars. Like any commercial business, the Postal Service is subject to increased costs and reduced revenue. We’re facing competition from e-mail and online bill paying. And this past year we’ve seen some of our biggest mailing customers, in fields like financial services, insurance, and housing, struggle at an unprecedented level. This general economic decline has had an historic impact on the volume of mail, which fell nationally by an unprecedented 9.5 billion pieces, or 4.5% last fiscal year, resulting in a net operating loss of $2.8 billion after the Postal Service paid a law–mandated $5.6 billion to prefund retiree health benefit liabilities.
