The postal service is reporting losses of $1.9 billion during the early months of this year. The USPS has been plagued by financial troubles for years, and the troubles are only get worse and not better. In fact, this is the 20th quarter that the USPS has shown a loss in the last 22. That is just a very telling sign of the trouble the agency is having. According to USA Today, the USPS is now looking to the government to help fix the financial problems with new legislation.
The USPS has tried to turn the problems around on their own. The organization has increased revenue by raising stamp prices, and it has even suggested that Saturday mail deliveries should end. This has not officially happened yet, but it has been on the table as a possibility for quite some time. The postal service has also let go of employees to help the finanical crisis it faces.
Patrick Donahoe, the Postmaster General, spoke out today, and he said that even with all the changes they have made the problems will continue as first class mail "continues to decline." Is this decline due to the increase of technology to send communications instead? With paperless billing becoming more popular with companies and families using text messaging, emails and social media to keep in touch, there is a less need for letters to be sent via mail.
According to the CFO, Joseph Corbett, the USPS needs a large cash flow to bring it out of the red. Only legislation from Congress will create that. What do you think? Do you find yourself mailing less? Will the USPS become a thing of the past as the use technology continues to expand?