Postal Service loses $3.8B even after cuts

USA Today reports:

The Postal Service reported a loss of $3.8 billion last year, despite a reduction of 40,000 full-time positions and other cost-cutting measures.

The loss was $1 billion more than the year before despite job cuts and other efforts designed to save billions of dollars. "Our 2009 fiscal year proved to be one of the most challenging in the history of the Postal Service," Chief Financial Officer Joseph Corbett said Monday.

The post office has struggled to cope with a decline in mail volume caused by the shift to the Internet as well as the recession that resulted in a drop in advertising and other mail. Total mail volume was 177.1 billion pieces, compared with 202.7 billion pieces in 2008, a decline of almost 13%. For the fiscal year that ended Sept. 30, the agency had income of $68.1 billion, $6.8 billion less than in 2008. Expenditures were down $5.9 billion to $71.8 billion.