The U.S. Postal Service (USPS) said on Thursday that it lost a net $3.3 billion in the first quarter, despite a stronger than expected holiday shipping season.
“Technology continues to have a major impact on how our customers use the mail,” stated Postmaster General and CEO Patrick Donahoe, adding that “it has had a significant negative impact on some of our much larger sources of revenue, particularly First-Class Mail.”
Donahoe said that to return to profitability, he announced a plan to cut yearly costs by around $20 billion by 2015. However, the plan needs Congressional approval, as the USPS expects to run out of money by October.
“Passage of legislation is urgently needed that provides the Postal Service with the speed and flexibility needed to cut costs that are not under our control, including employee health care costs,” he added.
In the past fiscal year that ended in late September, the Postal Service lost $5.1 billion.
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