ThoughtCo uses cookies to provide you with a great user experience. Naturally, the post office is not exempt from that impact, and it didn’t take long to feel its … The post office has been operating without any taxpayer money since. If not for the 75-year pension and healthcare obligation, the USPS would have reported operating profits for the last six years. The other side of the USPS is the parcel-delivery service, which is profitable. The initial bailout bill Congress passed in March provided $13 billion for the post office, far less than the $25 billion the organization was seeking in the bill. The funding requirement, as it currently stands, contributes significantly to postal losses.". Is End of Saturday Mail Delivery Such a Good Idea? Postal Service reported yet another quarterly loss, a total net loss of $1.3 billion during its second quarter from January to March. Some of those could probably be cut. Already burdened by a negative net worth of $65 billion and an additional $140 billion in unfunded liabilities, the USPS originally expected to run out of liquidity by 2021 without help from Congress. Clip: What a system! The arrangement has … And then, in early May, Trump appointed Louis DeJoy the new postmaster general, and he will take the reins of the organization on June 15. Four charts explain the Postal Service’s financial struggles. On April 3, Trump said, "the post office is losing billions of dollars," at U.S. taxpayers' expense. The first one that comes to mind is — you guessed it — the coronavirus pandemic. Clip: The Post Office Department is leading the search for better ways to process and dispatch mail in the shortest time possible. Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. That loss is partly — but not entirely — attributable to the post office’s obligations to put money aside for retiree benefits that were awarded to employees (but were not pre-funded) in the past. There is much criticism of the Postal Service for losing money. The Post Office … Parcels are key. It reported a $2.7 billion net loss in 2017 . Competition from UPS and FedEx made the post office innovate on its offerings, like introducing express mail. By using ThoughtCo, you accept our, COVID-19 Pandemic Threatens Postal Service Survival. Then you have about 250 big distribution centers. No Wonder the Post Office Is Losing Money! Yes, to the tune of . Not only do many of these restrictions not make sense, they directly undermine the success of the USPS. The post office is losing so much money because it is failing to adapt to the reality of the current market place mostly because government requirements and regulations won't let it adapt. The Postal Service Lost $3.9 Billion Last Year Despite a $1 billion increase in revenue, unsustainable personnel costs pushed USPS' losses to such great heights. The U.S. Wonder why the post office is losing money. This established routes and made it illegal to open anyone's mail. The Post Office’s mission has changed. In addition, the post office must cover its costs in its commercial package delivery business under the … 0 0. WASHINGTON, Aug 11 (Reuters) - The U.S. By Letter to the Editor. In April 2020, lawmakers warned that losses related the novel coronavirus COVID-19 flu pandemic could threaten the Postal Service’s very existence. This model is similar to the way many other companies and corporations fund their own healthcare pensions. Postal Service (USPS) had largely completed Post Office Structure Plan's (POStPlan) implementation prior to a 2014 POStPlan arbitration decision and expected millions in cost savings. May … USPS just hired FedEx to haul mail for it for the next seven years... for $10.5 billion. since, “No Rules Rules: Netflix and the Culture of Reinvention”. See also: Find Postal Service Jobs Without Being Scammed, "We must pay today for benefits that will not be paid out until some future date," the Postal Service said. said it doesn’t lose money on the agreement. Narrator: But what really transformed the post office into what we know today? The agency blamed the losses on the recession that began in December 2007 and significant declines in mail volume as a result of changes in the way Americans communicate in the age of the Internet. “ The Post Office has lost money for years, though advocates emphasize it’s a subsidized government service rather than a profit-maximizing business like FedEx or … The post office is losing a fortune, but Trump is wrong to blame Amazon. The Post Office’s Problem Isn’t Trump Democrats cry sabotage. Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries. The Next Bailout? That happened a few years later. The reason is simple: more than 90 percent of mail is sent by … As I entered my office this morning, there sat a returned letter from the post office with $.05 postage due. “Based on a number of briefings and warnings this week about a critical fall-off in mail across the country, it has become clear that the Postal Service will not survive the summer without immediate help from Congress and the White House. The U.S. However, without unreasonably burdensome restrictions, it would likely be a different story. THEY LOSE A FORTUNE, and this will be changed. The first one that comes to mind is — you guessed it — the coronavirus pandemic. $ 9.3 billion profit a White House meeting any organization, has plunged percent. Of mail very existence he says mail slot as you can plainly see just! 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