USPS warns it must continue cutting costs in order to avoid a government bailout

The United States Postal Service (USPS) on Thursday warned investors that it must continue to reduce its costs, or else risk a government bailout, after it reported a net loss of $9.5 billion for fiscal year 2024.

The postal service reported that it has lost more than $100 billion since 2007, but began implementing a decade-long restructuring plan in 2021 that aims to eliminate $160 billion in predicted losses over the next 10 years.

The USPS said the net loss in 2024 was three billion more than its loss the previous year. The cost difference is largely because of an annual increase in non-cash workers’ compensation expense, according to Reuters.

"If we do nothing more, we remain on the path to either a government bailout or the end of this great organization as we know it," the Postal Service said in a restructuring plan on Thursday.

The decrease is also partly due to a loss in shipping, even after the service increased the costs of its stamps in July.

Despite the warning, Postmaster General Louis DeJoy has still expressed optimism in the service's financial future. The service has also seen an increase in revenue in the most recent fiscal year, which rose by 1.7% to $79.5 billion, per CBS News.

The Postal Service said that although there was a bigger loss in fiscal year 2024, it does not plan to reduce the amount of retail locations nationwide. 

Misty Severi is an evening news reporter for Just The News. You can follow her on X for more coverage.