In his latest “Dollars and Change” video, Chief Financial Officer Joe Corbett reviews the Postal Service’s financial results from fiscal 2019’s third quarter (April 1-June 30).
USPS recorded total revenue of $17.1 billion and operating expenses of $19.3 billion, leaving the organization with a net loss of $2.3 billion.
The net loss was driven by several factors, including ongoing declines in First-Class Mail volume due to consumers using digital alternatives to communicate.
Additionally, USPS experienced lower volumes in its shipping business due to increasing industry competition — primarily in “last mile” packages, which refer to parcels that are entered at a local Post Office and delivered to customers’ homes.
To help restore financial stability, USPS is focused on growing its shipping business through competitive pricing and consistent, reliable service.
“As the Postmaster General has said, we are not going to concede any business,” Corbett says.
Additionally, the organization is taking actions under current laws and regulations to grow revenue, reduce expenses and minimize losses.
“Ongoing aggressive management actions, combined with urgently needed legislative and regulatory reforms, remain a top priority,” Corbett says.
He concludes the video by thanking employees for their “active involvement in managing the levers that we can control together.”