WASHINGTON — More than three years ago, the U.S. Postal Service unveiled a sweeping 10-year plan meant to steer the organization out of a financial crisis. The plan, which included consolidating locations, raising prices and lengthening promised delivery times, was meant to stabilize an agency that had lost $87 billion over the past 14 years.
That effort has run into major obstacles. Early attempts to modernize the delivery network temporarily led to worse service in areas including Atlanta and Richmond, Virginia, where the agency has rolled out new regional processing and distribution centers.
The Postal Service’s long-term financial viability also remains in doubt. Revenue is up, but expenses have climbed, in large part because inflation has surged in recent years and driven up labor costs. At the same time, the agency is grappling with declining mail volume.
In early 2021, Postal Service management initially projected that it would break even by fiscal year 2023. Instead, the agency, which is supposed to be self-sustaining, lost $6.5 billion that year and is projected to lose an additional $6.3 billion this fiscal year.