LoginThe U.S Postal Service (USPS) lost 1.9 billion dollars in the fist three months of 2013, which was still an improvement from the first quarter of 2012 when it lost $3.2 billion. The narrowing of losses in the USPS were attributed to slightly lower healthcare costs for employees and somewhat higher revenues during the time period.
"To return the Postal Service to solvency requires a comprehensive approach, which is reflected in our updated five-year business plan," said Postmaster General Patrick Donahoe, reports the Los Angeles Times.
The USPS has been struggling in recent years as its mail deliveries have declined. It defaulted on on $11.1 billion due for retiree health benefits in 2012 and expects to default on an additional $5.6 billion in September.
The postal service has requested Congress vote to allow the agency to expand products and services, adjust delivery frequency to five-day a week and require future employees to contribute a defined amount toward retirement.
The USPS reduced its workforce by 46,000 during 2012, mainly through attrition and severances, and now has the lowest number of employees since 1996. The agency says that if legislative changes are not adopted soon, it will be impossible for it to ever return to profitability.