The Postal Service has said it could run out of cash to pay its bills. It reported a net loss of $2.2 billion for the second quarter – wider than the $1.6 billion net loss it reported this time last year – and said default on federal payments is looming.
The wider loss comes despite cost reductions, growth initiatives and workforce reductions – it dropped 130,000 employees in the past three years – as it contends with an ongoing decline in mail volume, a down economy and large obligations.
USPS will have a cash shortfall and is on course to hit its statutory borrowing limit by the end of the fiscal year and absent legislative changes it said it would be forced to default on payments to the federal government.
