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US Postal Service to end Saturday letter delivery | US Postal Service to end Saturday letter delivery |
(35 minutes later) | |
The US Postal Service plans to end Saturday delivery of first-class mail by August, in its latest cost-cutting drive. | |
The move would save about $2bn (£1.3bn) a year, according to the agency. | |
But the USPS will still deliver parcels six days a week, a service that has grown by 14% since 2010. | |
The financially troubled postal service lost nearly $16bn last year and has defaulted twice on required payments to the US government. | The financially troubled postal service lost nearly $16bn last year and has defaulted twice on required payments to the US government. |
The 237-year-old institution is in the middle of a major restructuring, although it is projected to remain in the red this year. | |
Since 2006, the agency has reduced its costs by about $15bn and cut its workforce by 28%, the equivalent of 193,000 jobs. | Since 2006, the agency has reduced its costs by about $15bn and cut its workforce by 28%, the equivalent of 193,000 jobs. |
The new proposal may require congressional approval. Although the USPS does not receive taxpayer funding, it is subject to government control. | |
Postmaster General Patrick Donahoe told reporters on Wednesday of the plan to deliver letters to homes and businesses from Monday to Friday, with packages still to be delivered on Saturdays. | |
In excerpts of his speech, he was to say: "The American public understands the financial challenges of the postal service and supports these steps as a responsible and reasonable approach to improving our financial situation." | |
Research suggests seven in 10 Americans support the shift to a five-day schedule, he says. | |
Analysts say the driving factor behind the financial difficulties at USPS is mandatory costs for future retirement health benefits. | |
The internet and competition from rivals such as FedEx and UPS have also weakened the agency. | |
But parcel deliveries have grown as consumers order more products from sites such as eBay and Amazon. |