The U.S. Postal Service, in a bid to recoup lost revenues, plans to shutter at least 2,000 postal stations nationwide. There are 491 such closures currently underway. According to Postal Service spokeswoman Joanne Veto, the Postal Service is not planning to close any post offices. The law prevents the closure of post offices for solely economic reasons. According to Veto, the closures will only affect stations and branches as being smaller than post offices, with no mail processing, and sometimes no mail carriers.
LOS ANGELES, CA (Catholic Online) – Mail volume, the main source of income for the Postal Service, has declined in part with the recession.
Not only is it competing with the Internet as a means of communication, but businesses have been spending less money to send out advertisements, commonly referred to as “junk mail.”The Postal Service suffered a net loss of $8.5 billion in fiscal year 2010, in contrast to a loss of $3.8 billion the prior year. The Postal Service delivered about 171 billion pieces of mail in fiscal year 2010, compared to 177 billion the prior year, costing about $1 billion in lost revenue.”We have post offices that have fewer than five transactions a day,” Veto says.U.S. Postal Service spokeswoman Sue Brennan said that deliveries by the Postal Service have declined by 43 billion pieces in the last five years.”We have nearly 32,000 post offices and only 19% cover their costs” Brennan says.Locations will be closed based on finances, proximity to post offices, and availability of post office boxes and stores that sell stamps. The Postal Service didn’t identify specific stations and branches slated for closure. The Wall Street Journal reported on Monday the post office’s plans to close 2,000 facilities.Other cost-cutting measures, such as scaling back mail deliveries to five days a week have been shot down by regulators or lawmakers.Even though it’s a federal agency, the Postal Service has not received any taxpayer funding since the early 1980s, when it was phased into an independent, self-sufficient financial entity.