Postal Service May Lay Off 120,000

The U.S. Postal Service continues to deliver awful news, proposing job cuts of as many as 120,000 workers in an attempt to temper costs in the wake of massive financial losses. Projecting to lose more than $8 billion for the second straight year, the USPS also wants to set up its own health plan, pulling employees out of the federal system.

According to the Washington Post, the service will need Congressional approval for the cuts, and can expect to face a fight from postal unions with contracts that forbid layoffs.

Declining use of the mail is one reason USPS is suffering the massive losses. Also, the service has announced it can’t cover a $5.5 billion payment, due Sept. 30, needed to cover employee health coverage.

Postal Service proposes cutting 120,000 jobs, pulling out of health-care plan [Washington Post]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.