Despite laying off employees and consolidating operations, U.S. postal officials are now resorting to service changes to help make up lost revenue. Indiana Postal Service Spokesperson Mary Dando says the cost savings is needed to help sustain the company.
“That includes package delivery Monday through Saturday and mail delivery Monday through Friday, and the postal service we expect to save about $2 billion dollars annually once the plan is fully implemented,” Dando says. “While we will go to five day mail delivery, that’s letters and cards, we still will go six day delivery for priority mail and express mail.”
IU School of Public and Environmental Affairs Professor Lisa Blomgren Bingham says that the volume of mail has been shrinking since more people are paying their bills online.
“If you can’t cover your expenses with keeping different post offices open, then you have to raise the rates,” Blomgren-Bingham says. “If the volume is shrinking, but you can’t cut costs below a certain floor then there’s no choice left.”
Bingham says the competition of other mail delivery services such as Fed Ex and UPS has also affected the bottom line of USPS. The new delivery schedule is slated to begin August 5th.