Post Office Lost $8.5B Last Year
The AP reports:
The Postal Service said Friday it lost $8.5 billion last year despite deep cuts of more than 100, 000 jobs and other reductions in recent years. The post office had estimated it would lose $6 billion to $7 billion, but a sharp decline in mail took a toll. Increased use of the Internet and the recession, which cut advertising and other business mail, meant less money for the agency.
For the year ending Sept. 30, the post office had income of $67.1 billion, down $1 billion from the previous fiscal year. Expenses totaled $70 billion, a decline of about $400 million. The post office also was required to make a $5.5 billion payment for future retiree health benefits.
"Over the last two years, the Postal Service realized more than $9 billion in cost savings, primarily by eliminating about 105,000 full-time equivalent positions - more than any other organization, anywhere," chief financial officer Joe Corbett said in a statement. "We will continue our relentless efforts to innovate and improve efficiency. However, the need for changes to legislation, regulations and labor contracts has never been more obvious."
The post office is currently in contract negotiations with two of its unions, with two more scheduled to be negotiated next year.
The loss of $8.5 billion in 2010 was $4.7 billion more than the previous year.
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