US POSTAL FACING MAJOR FINANCIAL CRUNCH - Five Day Mail Service Coming?

(03/26/2009)

Postmaster General John Potter told Congress the US Postal Service will run out of money this year.

"We are facing losses of historic proportion. Our situation is critical," Potter said.

The postal service lost almost $3 billion last year, and losses are expected to be greater this year.

Potter said reducing mail delivery from six days to five days a week could save $3.5 billion annually.

The postal service has been facing major challenges from Internet and other private competitors, with some critics saying the agency has failed to focus on customer needs.

"Without a change we will exhaust our cash resources," he said. "We can no longer afford to do business as usual."