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Near bankrupt Postal Service to announce cuts Monday

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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.

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By Catholic Online (NEWS CONSORTIUM)
Catholic Online (https://www.catholic.org)
12/5/2011 (1 decade ago)

Published in Business & Economics

Keywords: Postal Service, cuts, first-class mail, delivery

WASHINGTON, DC (Catholic Online) - Currently, the US Postal Service does a good job moving unprecedented amounts of mail very rapidly from one place to another. For a long time, it has been taken for granted that in cases of local delivery, a stamped first-class letter will almost always arrive the very next day. This will not be the case in the future.

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. 

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