Near bankrupt Postal Service to announce cuts Monday
Delivering a first class letter will now take longer.
On Monday, the US Postal Service is expected to announce more than $3 billion in cuts that everyone will be sure to notice. The cuts are necessary because the organization continues to operate in the red, and Congress has not signaled that they will be delivering any help to the ailing institution.
Postal Service expected to save billions through deep cuts.
The Postal Service is warning that people should expect to see delivery times for first-class mail increase by 1 to 2 days. Even local mail delivery will slow down by at least a day.
Some analysts warn that while the move might save the post office money in the short term, they could also push yet more business to the internet, meaning more revenue losses for the Postal Service in future years.
The fact of the matter is, the Internet has nearly replaced the Postal Service. Virtually any first-class material that has been traditionally delivered by the Postal Service, can now be delivered virtually via the Internet. Even statements, bills, and payments are now routinely sent by electronic means as an effort by agencies and firms to save on postage costs.
The cuts that will be announced on Monday will be focused on the closure of almost half of the 500 mail processing centers throughout the United States. The closures are set to begin next March.
The closure of the centers will slow first-class mail delivery which currently is delivered within one to three days. Officials from the Postal Service say that mail will now take 2 to 3 days for delivery. Periodicals, they warn, could take up to nine days for delivery.
In addition to closing the processing centers, about 3,700 local post offices are also expected to be shuttered. As many as 100,000 employees could see their jobs cut as a result of the closures. These job cuts are expected to save the Postal Service up to $6.5 billion per year.
The Postmaster General Patrick Donahoe has also announced that the agency intends to cut back mail delivery to five days per week, and will eliminate Saturday service. The agency also wants to raise stamp prices, and reduce health care and labor costs.
While to some, the Postal Service has become an anachronism, still it is an important government service. Many expect that over the next year as cuts and changes take effect, Americans will begin to realize that the Postal Service is a valued entity that has long been taken for granted. On Monday, the writing will go on the wall.
© 2011, Catholic Online. Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: Postal Service, cuts, first-class mail, delivery
NEWSLETTERS »
Rate This Article
1 - 1 of 1 Comments
Leave a Comment
More Business & Economics News
- Web developer: Earn $60,000 a year - without college degree or debt
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Does shift to mobile mean Facebook's salad days are done? Not at all
- U.S. annual growth rate slowest since 1929, start of Great Depression
- Prosperity gap between races in U.S. widened during recession
Featured News
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.
Most Popular
There's the problem! Americans are out of touch with scientific consensus on climate change Read More
Sex In Uniform: Why the Increase in Sexual Assaults in the Military? Read More
Culture of Corruption: Why Obama's misuse of Marines is wrong Read More
Bill Donohue, Catholic League, Disclose Fight with the IRS, Demonstrate Courage Read More
Pope Francis Shakes up the Ambassadors Meeting and Addresses Economic Issues Read More
Daily Readings
Reading 1, Sirach 5:1-8
Do not put your confidence in your money or say, 'With this I ... Read More
Psalm, Psalms 1:1-2, 3-4, 6
How blessed is anyone who rejects the advice of the wicked and ... Read More
Gospel, Mark 9:41-50
'If anyone gives you a cup of water to drink because you belong ... Read More
Saint of the Day
St. John Baptist Rossi
May 23: This holy priest was born in 1698 at the village of Voltaggio in ... Read More
Latest Videos
BREAKING: British Soldier Beheaded On UK Street 2013 View Video
Mass singing in St. Peter, Vatican View Video
Miss Crosswhite, the Oklahoma teacher that dared to pray View Video
Marketplace
A Man of Miracles
A portrait of a great and humble man, known to the world as the ... Read More




Print















I have had so many email addresses that it is hard for me to keep up. I even have an address for a kindle.Sometimes email is not received because people do not take the time to let all their correspondents know of their new email address. Your can forward but it is spotty at best.. With the postal service you get a year of forward and six additional months of return to sender with your new address. The continued flow of mail is important to our economy and it is a shame that the postal service has to make these cuts. What happens if electronic mail fails? Cyber attacks are a real possibility. What happens if the economy turns arround and advertisers want to send out a sale ad? Lead time for a letter will increase by a couple of days.The real problem is the loss of jobs and the human lives and families that will be affected.