The United States Postal Service announced today it cannot continue to wait indefinitely for legislation to help it survive “an unprecedented set of financial challenges,” asking management to plan for liquidity conditions.
The Postal Service Board of Governors, citing the inability of U.S. Congress to pass comprehensive postal legislation, has been discussing accelerated cost cutting and directed management to accelerate the restructure of Postal Service operations.
The board approved specific restructuring initiatives and also instructed the USPS to revise its 2012 five-year comprehensive plan to account for current financial and liquidity conditions.
Since 2006, the Postal Service has reduced its annual cost base by approximately $15 billion and reduced the size of its career workforce by 168,000 or 24 percent.
In fiscal year 2012, the USPS defaulted on $11.1 billion in mandated payments to the U.S. Treasury, which contributed to a recorded loss of $15.9 billion.
The Postal Service continues to seek legislation to provide it with greater flexibility to control costs and generate new revenue, and is encouraging the 113th Congress to make postal reform legislation an urgent priority.