To remain financially viable, the Postal Service must effectively streamline its mail processing and transportation networks and optimize its workforce. Between fiscal years (FYs) 2005 and 2009, the Postal Service made progress in these efforts; however, management was unable to adjust resources quickly enough to fully offset declines in mail volume, resulting in a deteriorating financial condition. In FY 2009, the Postal Service experienced the largest 1-year decline in total mail volume since the Postal Reorganization Act of 1970 — a drop of more than 25 billion pieces.
No pain no gain. The U.S. Postal Service has reduced spending over the past decade but it has come with a downside, notably a reduction in service. Over the past decade the Postal Service has reduced labor costs by $10 billion, improved productivity, and generally reined in spending.