The United States Postal Service (USPS) has been bleeding money for several years now. It lost $9 billion last year and is facing default if it doesn’t make a huge ($5.5 billion) payment into its retiree medical plan soon. The postal service seems to lose more every year and by some estimates annual losses could reach $16 billion by 2016 unless something is done.
The USPS hopes to get more revenue by promoting its advertising mail (like catalogs and credit card offers). It also wants to reduce its work force, reduce the amount it it required to set aside for retiree health benefits, and be able to offer services besides just mailing letters (such as offering retail products and services).
The USPS also is closing many post offices and wants to cancel Saturday delivery and cancel one-day delivery of first class mail. The price of a stamp is going up to 45 cents in January 2012.