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In the surest sign yet that it is facing significant financial headwinds, the U.S. Postal Service plans to stop delivering mail on Saturdays starting Aug. 1, the agency is set to announce Wednesday.
The Washington Post reports:
The financially struggling U.S. Postal Service plans to stop delivering mail on Saturdays starting August 1, the agency is set to announce Wednesday.
This means that for the first time Americans will receive mail only five days a week, a significant shift for the storied mail agency, which has suffered tens of billions of dollars in losses in recent years with the advent of the Internet and e-commerce.
USPS plans to continue Saturday delivery of packages, which remain a profitable and growing part of the delivery business. Post offices would remain open on Saturdays so that customers can drop off mail or packages, buy postage stamps, or access their post office boxes, officials said. But hours likely would be reduced at thousands of smaller locations, they said.
Canceling Saturday mail deliveries will save USPS $2 billion annually, according to congressional and postal officials, who confirmed the news ahead of a formal announcement.
The Postal Service said that it suffered a $15.9 billion net loss for fiscal 2012, which ended Sept. 30. That’s three times the loss recorded a year earlier.
The report goes on to note that the announcement is being made without congressional approval, however this move has been anticipated for years now, and with a $15.9 billion loss for 2012...there seems little left to debate.