The US Postal Service today said it suffered a net loss of $2.8 billion for the fiscal year 2008, which ended September 30.
The Postal Service blamed the loss on the national economic slowdown lowering mail volume, and additional costs mandated by the Postal Act of 2006.
The USPS said the loss occurred despite more than $2 billion in cost-cutting measures that included the use of 50 million fewer workhours compared to the previous year.
Mail volume in fiscal year 2008 totaled 202.7 billion pieces, a decline of 9.5 billion pieces, or 4.5%, compared to the previous fiscal year.
Total revenue in fiscal year 2008 was $75 billion, unchanged from last year. Expenses totaled $77.8 billion, including the $5.6 billion payment required by the Postal Act of 2006 to pre-fund retiree health benefits.
“We expect the new fiscal year to be another difficult one for the Postal Service and the entire mailing industry, as economic factors will continue to reduce mail volume and increase expenses,” Postmaster General John Potter told the Postal Service Board of Governors at a meeting. “As we continue to reduce work hours and other costs, our top priority remains providing excellent service to our customers. The combination of excellent service and affordable prices makes postal products a great value.”