USPS’ Year-end Financials Signify the Greatest Challenge yet for its New Leadership

Today, the U.S. Postal Service issued its FY 2019 financial results – a report laden with distressing, yet unsurprising news. The USPS’s latest annual loss of $8.8 billion marks the federal agency’s largest since 2012 when its red ink grew by $15.9 billion. The USPS’ total losses since the current Postal Service law, the Postal Accountability & Enhancement Act (PAEA), came into effect now amount to $77.8 billion.

American Consumer Institute president, Steve Pociask issued the following statement on the need for major operational reforms within the USPS amidst its tumultuous financial circumstances, and the organization’s imminent change in leadership following the retirement of current Postmaster General (PMG) Megan Brennan:

“The Postal Service’s immense losses are a clear indicator that the status quo operational model is simply not sustainable for the years ahead. To best serve those who use the mail system nationwide, the USPS needs a clear and viable plan for how it will become a functional, self-sufficient entity. Just like other large businesses, the Postal Service needs to obtain an accurate and transparent grasp of its true costs, revenues, and ability to properly fulfill all of its services.

For too long the Postal Service has pursued a path focused on price gouging consumers on highly profitable USPS services, while maintaining below-market pricing for competitive market products, like parcels. If the USPS has any hope of understanding where the agency is gaining and losing money, it must cease comingling the balance sheets of all of its business units. This is just one of many areas for new USPS leadership address as it works to support the nation’s economy.”

As PMG Brennan prepares to relinquish her duties on January 31, 2020, American Consumer Institute has highlighted how the USPS Board of Governors now has a unique chance to elect a well-qualified leader who can facilitate meaningful change.

New expertise at the helm of the USPS, coupled with an astute and impactful business plan, will help the organization to reduce its inefficiencies and put its substantial profits to appropriate use in paying down its debt and improving upon its deteriorating service for its customers.

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