U.S. Postal Service Faces Financial Challenges
(SPRINGFIELD, Mass.) (WGGB)–The postal service is in the midst of a major restructuring of its overall operations.
On Wednesday Postmaster General Patrick Donahoe announced that Saturday mail deliveries will be eliminated starting in August.
Since 2006, it has cut annual costs by about 15-billion dollars, reduced the size of its workforce by 28 percent and consolidated more than 200 mail processing centers according to postal officials.
The elimination of Saturday mail delivery is the latest cost cutting measure.
The postal service says it will save about two billion dollars a year by eliminating Saturday service, however that’s just a small fraction of the 16 billion dollars the postal service lost last fiscal year.
In the past one of the cost saving measures was a proposal to close thousands of rural and smaller post office branches.
For example, one of them on the chopping block was the Indian Orchard post office.
But last year, the postal service cancelled that plan giving post offices like the one in Indian Orchard a new life.
For customers like Gloria Mitchell, it was welcome news. they want their small neighborhood post office to stay open,”This branch is almost as old as the downtown post office and we’ve had this branch here since Indian Orchard was founded,” says Mitchell.
Not everyone feels the same way though.
The reality of tough financial decisions make some feel the closing of smaller branches might be an effective way to save money,”I can totally understand if that was a necessity for them to stay in business and support the public then that’s the step they would have to take,” says Dennis Anghilante of Springfield.
The postal service says the agency’s biggest problem was due to increasing mandatory costs for future retiree health benefits, totaling 11-billion dollars of the losses.