The decision comes after USPS suffered a $9.5 billion loss in recent fiscal year.
The US Postal Service (USPS) has announced changes to mail delivery times in a move that is expected to save billions of dollars.
The agency said it will “delive 75% of top-class mail by the same standard.” 14% will be upgraded to a faster standard. 11% is slower than standard, but everything is within the current standard 1-5 days of service date. ”
According to the agency, 80% of the “market-dominated” volume is expected to not be affected by the new rules.
The USPS estimates at least $36 billion in savings over a decade from reducing email processing, real estate and transportation costs after the new measures are implemented.
The adjustments will be implemented in two phases, with the first phase beginning on April 1st and the second beginning on July 1st.
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USPS will provide user-friendly tools to help customers understand how long it takes for mail to reach their destination.
Outgoing Post Officer General Louis DeJoy said the USPS is suffering from rules that have not been adjusted to take into account changes in volume and email mix.
“For decades, and most specifically, over the past three years, Congress has been actively resisting operational solutions and meaningful change,” he said.
“Implementing new standards and operational initiatives that align them will enable us to achieve the goals of our modernization plan and create a high-performance, financially sustainable organization.”
Despite a slight increase in revenue, the loss jump rose from $78.18 to $79.53 billion. The agency raised its postage twice last year.
Trump and USPS
Last month, President Donald Trump suggested that USPS could be merged with the US Department of Commerce. His comments came after Howard Lutnick was sworn in as new Secretary of Commerce.
“We want to have a post office that works well and doesn’t lose a lot of money, and we’re thinking about doing that,” Trump told reporters on February 21 at the oval office.
“It’s going to be a form of merger, but it will remain a postal service and I think it’s way better than it has been in years.”
The president called the USPS the “risqué loser” in the country and said Lutnick would consider a potential merger. He ensured that the USPS would remain intact.
The president had previously proposed privatizing postal services.
Democrats opposed the possibility that Trump would dissolve the USPS board. “If President Trump advances this lawsuit and takes over and privatizes it, it’s not entirely illegal. It’s not entirely illegal. It hurts veterans, small business owners, rural communities, and all Americans who rely on the postal service for timely and reliable mail delivery.”
Zachary Stieber contributed to the report.
