Postal service to announce major cutbacks

December 5, 2011 9:28:25 AM PST
The U.S. Postal Service is set to announce big cuts Monday that will lead to slower delivery for consumers and businesses.

Email has taken a big bite out of snail mail, which is forcing the postal service to make the cuts. That comes as no surprise to some occasional customers...

"I dont use postal service except for work to mail things," said Talae Perry. "I text message and pay bills on-line."

The U.S. Postal Service says in the past five years, there has been a huge drop in first class mail, which is the bulk of the agency's revenue. Operating in the red for several years, the postal service is looking at an estimated $3 billion in cuts. Half of its 500 mail processing plants may close.

"Which means mail going from Chicago address to Chicago address, instead of being delivered the next day, (will be) delivered in two days," said Mark Reynolds, Chicago spokesman for the postal service.

For packages and magazines, the postal service says priority mail, two- to three-day delivery, will remain the same. The postal service is an independent agency of the government, so it does not receive tax money. There are bills in Congress to financially help the postal service, but it will not be enough.

Despite the changes in technology, the U.S. Postal Service's loyal followers want to see the agency survive.

"It's cheaper than Fed-Ex and UPS for stuff I ship, especially for smaller things," said customer Bridget Gunden.

The cuts will not affect this seasons Christmas cards.vThe mail processing plants are not expected to close until the spring.

Meanwhile, the price of stamps will go up Jan. 22 from 44 cents to 45 cents.

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