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30-Jan-2009

“A Revolution in the Way People Communicate” – USA

USA citizens are choosing in their masses to use internet instead of the postal service, causing massive deficits, that could force the post office to cut out one day of mail delivery.

Faced with dwindling mail volume and rising costs, the post office was $2.8 billion in the red last year. "If current trends continue, we could experience a net loss of $6 billion or more this fiscal year," Postmaster General John E. Potter said.

The post office's problem is twofold, Potter explained.
"A revolution in the way people communicate has structurally changed the way America uses the mail," with a shift from first-class letters to the internet for personal communications, photos and sound files, billings, payments, statements and business correspondence.

Potter noted that the agency has cut costs by $1 billion per year since 2002, reduced its work force by 120,000, halted construction of new facilities, frozen executive salaries, reducing its headquarters work force by 15 percent, but the flood of people using internet instead of post, means even greater cuts are necessary.
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