Postal Service to cut 8,000 more jobs this year

Postal Service officials announced they will cut more than 8,000 additional full-time jobs this year in the face of a continued decline in business.

The Postal Service will cut more than 8,000 additional full-time jobs this year as the agency struggles to contain its losses in the face of declining business, the Associated Press reported.

Postmaster General John Potter said the additional cuts mean that a total of 20,000 career positions are being eliminated this year, all through attrition. So far about 11,800 positions have already been cut.

Potter told the Postal Service's governing board that financial managers are projecting a loss of $1.5 billion for fiscal 2002, less than previous projections of losses that have ranged as high as $4.5 billion.

The Postal Service is facing an unprecedented drop in business that began last year with the recession. It posted a $1.7 billion loss last year.

In addition to the cuts in personnel, the agency has reduced spending and frozen most construction projects, helping hold the losses to the now anticipated $1.5 billion.

In addition to falling mail volume, the Sept. 11 terrorist attacks followed by anthrax-laced letters have cost the agency hundreds of millions of dollars and is now engaged in a costly search for whoever is placing bombs in rural curbside mailboxes.