The U.S. Postal Service just announced a $8.5 billion loss for the 2010 fiscal year.
This was worse than its $3.8 billion loss in the previous year and a $2.8 billion loss in 2008. It was also worse than the $2.8 billion shortfall estimated last spring.
Note the trend: USPS is becoming as much of a perennial loser as Fannie Mae (note: USPS is an independent government agency, not funded by taxpayers).
USPS lost money despite cutting over 100,000 jobs and other reductions in recent years. Expect more reductions next year, including another 2 cents on the first class stamp and an end to deliveries on Saturday.
It’s pretty obvious why the USPS is losing money. Mail volume dropped to 170.6 billion pieces from 176.7 billion last year. People have discovered a better way to communicate.
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