Postmaster General wants to cut mail delivery back to five days instead of six. Last year the Postal Service lost 2.8 billion and projects a 6 billion or more loss for 2009.

In 2008 mail volume experienced the biggest ever drop to a previous year. Even with an approximate 2 cent rate hike due in May, the total amount collected by the Postal Service this year may decline for the first time ever year over year.

The Postal Service estimates delivering mail five days a week instead of six could save 3.5 billion dollars. A George Mason University study estimates a savings of about 1.9 billion. Mail delivery would be suspended on one of the lighter days of the week, possibly Tuesday.

Now for the really bad part. The Postal Service is asking Congress to ease the requirement that it make advance payments into a fund to cover future health benefits for retirees. Last year that amount was 5.6 billion. The agency is promising to cover the premiums for retirement health insurance but not on a prefunded basis.

The Postal Service has since 2002 cut cost by 1 billion a year, cut employees by 120,000, stopped construction of new facilities, frozen executive salaries, and will reduce it headquarters workforce by 15%.

http://news.yahoo.com/s/ap/20090128/ap_on_go_ot/meltdown_post_office

Wow. I picked a good time to resign and cash out.

The post office has a monopoly on the delivery of mail. That is a sign of government's ability to run a business; cannot make a profit under circumstances forbidden to private industry, who can make money with competition. If they cut delivery by one day a week, Are they going to reduce salary levels by 16%, you can bet your butt that they won't. Fricken gov't idiots. Oh well, Obama will fix it

Ditto!

And, I don't think they should have retirement benefits. They should save as they go, may-be then they will stop voting for inflation.

They blame the loss on computer generated bills. As an ebayer the shipping cost are what makes or breaks a deal.