Its “outdated network” has been blamed for revenue for the US Postal Service shipping and packages unit ‘fell off a cliff’ during the second quarter.
Total quarterly losses hit $3bn, the logistics wing one of the biggest losers, with a $646m drop in income and a 14.1% shortfall in year-on-year volumes.
This led postmaster general Louis DeJoy to suggest the service had entered a “transitional phase”.
He explained: “We are transitioning from an outdated network and operational posture, ill-equipped to handle the effects of the pandemic on the mix of mail and packages we process. We expect this volume shift to continue into the foreseeable future.
“[But] as we establish our new network design and deploy our operating initiatives, we will operate with much greater efficiency and precision, become financially self-sustaining and delivering greater value.”