Postal Service to Slow Delivery; No More Next Day Mail

Do you have an urgent letter? You should probably choose someone besides the United States Postal Service to deliver it for you. The UPSP is pushing ahead with huge cuts that will slow delivery and will eventually eliminate next day mail for stamped letters.

The Associated Press reports that the US Postal Service is cutting $3 billion from its budget. USPS is expected to detail the cuts later today.

The $3 billion in cuts could provide some temporary relief for the postal service as it tries to crawl its way out of bankruptcy, but without next day delivery, many customers could turn away from USPS in favor of other services.

The AP notes that the service slow down will effect a lot more than birthday cards. Netflix DVDs, paychecks, magazines, and even newspapers could face major challenges in 2012.

The cuts would bring the number of processing centers from nearly 500 to about 250. Since mail will have to travel further to reach its destination, USPS is lowering its delivery standards for first-class mail for the first time since 1971.

Jim Corridore, an analyst with S&P Capital IQ, who tracks the shipping industry, said:

“It’s a potentially major change, but I don’t think consumers are focused on it and it won’t register until the service goes away. Over time, to the extent the customer service experience gets worse, it will only increase the shift away from mail to alternatives. There’s almost nothing you can’t do online that you can do by mail.”

The Chicago Suntimes reports that close to 4,000 local post offices are being shutdown and nearly 100,000 employees will be laid off.

Postmaster General Patrick Donahoe said:

“We have a business model that is failing. You can’t continue to run red ink and not make changes. We know our business, and we listen to our customers. Customers are looking for affordable and consistent mail service, and they do not want us to take tax money.”

Do you still use the United States Postal Service?