US Postal Service Cutting Services

US Postal Service 

The current mail system of the United States is "no longer financially sustainable," and the U.S. Postal Service (USPS) is looking for billions of dollars in cuts to its services.

The postal service announced Thursday it was considering closing nearly 250 processing facilities, cutting equipment by 50 percent and slowing mail delivery in an extreme cost-cutting effort. It is looking for $3 billion in annual savings.

And as the president and Congress search high and low for ways to boost job creation, up to 35,000 people could be laid off as part of that effort.

"We are forced to face a new reality today,” said Postmaster General Patrick Donahoe. “With the dramatic decline in mail volume and the resulting excess capacity, maintaining a vast national infrastructure is no longer realistic."

Since the advent of email and other electronic communication, the postal service has seen a steady decline in its use. More than 43 billion fewer pieces of mail are sent now than they were five years ago. First-class mail has dropped 25 percent, and the transmission of stamped letters is down 36 percent over that time frame. The postage purchased to send first-class mail is a primary source of revenue for the USPS.

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