USPS Drowing in Red Ink: Money Losses at $8.3 Billion

The US Post Office continues to flow down the river of red ink. The post office looses $8.3 billion  for fiscal year of 2010. That’s up sharply from Fiscal year 2009 which ended in a$3.6 billion loss. From CNN  Money:

The U.S. Postal Service more than doubled its losses in fiscal year 2010, despite cutting billions of dollars in expenses and trimming its staff.

The Postal Service said its net loss totaled $8.5 billion in the fiscal year that ended Sept. 30. That compares to a loss of $3.8 billion the prior year.

The government blames the troubles in the economy and growth of E-mail, instant messaging and text messaging:

The Postal Service blamed the deeper losses on the recession and on the continuing growth of e-mail. A change in the interest rates affecting the Postal Service’s workers’ compensation liability also played a role, the organization said.

The funny thing is the USPS made $9 billion in cuts:

Chief Financial Officer Joe Corbett said the losses were worsening despite cuts that generated cost savings of $9 billion over the past two years. Those savings came primarily from the elimination of 105,000 full-time positions — “more than any other organization, anywhere,” Corbett said.

Read everything.

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