he U.S. Postal Service will stop delivering mail on Saturdays but continue to deliver packages six days a week under a plan aimed at saving about $2 billion annually, the financially struggling agency says. The change will begin in August.
The U.S Postal Service reported a $3.5 billion third quarter loss due to continued declines in mail volume and increased costs from retiree health benefits. Without help from Congress and a postage rate increase, it could run out of cash in 2011.
The USPS has proposed a two-cent increase in the cost of first-class postage, which would push the stamp to 46 cents. If approved, the hike would be effective Jan. 2, 2011. Still, the higher rate won't fix what really ails the service.