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WASHINGTON: The US Postal Service plans to drop Saturday delivery of first-class mail by August in its latest effort to cut costs after losing nearly $16bn last fiscal year, the cash-strapped mail agency said yesterday.
The plan would save about $2bn a year, the Postal Service said. The mail agency will still deliver packages six days a week and will not change post office operating hours.
The Postal Service has been losing billions of dollars each year as it grapples with massive payments for future retiree health benefits and as Americans’ increasing online communications drive down mail volumes.
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,” Postmaster General Patrick Donahoe said in a statement.