USPS Halts Weekend Mail Service but Blood Loss Expected to Continue

February 6, 2013 9:10 AM EST
The U.S. Postal Service is expected to announce today that it will end mail deliveries on Saturday. The move is an effort to cut costs, and could save USPS $2 billion annually. Considering last year's loss, which totaled $15.9 billion, the move is not a surprise to those following the story.

USPS has been bleeding red for years, and critics point to it as a prime example of government bloat and inefficiency, especially when compared to profitable private shippers like Fedex (NYSE: FDX), UPS (NYSE: UPS), and DHL. Besides the six-day week, the postal service has massive cost associated with excess infrastructure and employee benefits, which many expect will lead to additional changes.

The cuts to weekend mail service do not include Saturday package deliveries, which remains profitable and are expected to continue for the foreseeable future.

Saturday mail delivers are expected to end in August.

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