The Postal
Service has a comprehensive business plan that provides a clear path toward
financial stability. To return to profitability, the Postal Service must
continue to take actions that reduce costs and grow the business. The plan
requires the reduction of annual costs by $22.5 billion by 2016. This cost
reduction is necessary given projected declines in First-Class Mail volume,
which has already dropped by 25 percent since 2006. However, the Postal Service
can achieve only a portion of these reductions under current business model
constraints; legislative changes are needed to achieve the full cost reductions
and to provide the Postal Service with the flexibility needed to adjust more
quickly to our customers’ changing mailing and shipping needs.
The Postal
Service continues to work with Congress to seek comprehensive legislation to
reform and improve the Postal Service business model. To return to long-term
financial stability and to avoid burdening the American taxpayer, the Postal
Service requires an urgent legislative remedy this fiscal year. In the absence
of legislative reform that quickly enables meaningful operational changes and
cost reductions, the Postal Service could incur annual losses as great as $21.3
billion by 2016, and accumulate a total debt of $92 billion by 2016. The Postal
Service will continue to lose $25 million per day until it is allowed to fully
enact its proposed changes.
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