USPS Posts $3B in Losses

    Postal worker Daryl Ha pushes his cart up a hill while delivering mail in the North Beach area of San Francisco, Wednesday, May 11, 2011.   The Postal Service is continuing to hemorrhage money, reporting a loss Tuesday of more than $2 billion over the first three months of the year and warning it could be forced to default on federal payments.  Such a default would not interrupt mail service to millions of Americans, but it could further hobble an agency struggling with a sharp decline in mail because of the Internet and a tough economy.  (AP Photo/Eric Risberg)

    Eric Risberg / AP Photo

    The U.S Postal Service lost $3.1 billion in the third quarter of the fiscal year despite cutting 7,500 administrative positions. The Postal Service also said that it will reach its legal borrowing limit by the end of the fiscal year. Postmaster General Patrick Donahoe said, “We continue to take aggressive actions to reduce costs and bring the size of our infrastructure into alignment.” The agency plans to close 3,600 unprofitable post offices in the next year and Donahoe also hopes to eliminate the Saturday mail delivery service. Though Express Mail and Priority Mail rose 7.3 percent during the third quarter, the agency expects to lose a total of about $9 billion this year.

    Read it at The Washington Post