Jun 15, 2009, 4:13 a.m. EST
Postal service, operating in the red, mulls more cuts: Journal
TEL AVIV (MarketWatch) -- The U.S. Postal Service, having posted a nearly $2 billion fiscal second-quarter loss, is contemplating cutting tens of thousands more jobs and closing or consolidating 3,100, or 8.4%, of its 36,700 offices and retail outlets, The Wall Street Journal reported.
The Postal Service also is considering eliminating Saturday deliveries, the Journal reported, as mail volume for the quarter ended March 31 shrank 15% from a year earlier.
First-class-mail volume has been cut because people and businesses increasingly pay bills and correspond via the Internet. In addition, the weaker economy has prompted businesses to send fewer catalogs and direct-marketing mailings, the Journal reported.
Automation, attrition and early retirements have pared full-time staff to 636,000 from more than 800,000 in 2000, the paper reported.
The agency faces opposition to further cutbacks, however, from both legislators and the public at large, the Journal reported.