September 1, 2020
The Postal Service is continuing to experience dramatic shifts in its business due to the coronavirus pandemic, Chief Financial Officer Joe Corbett reports in his latest “Dollars and Change” video.
Quarantines, stay-at-home orders and travel restrictions have affected customers and businesses, leading to deep declines in First-Class Mail and Marketing Mail volumes during fiscal year 2020’s third quarter (April 1-June 30). However, increases in online shopping during the pandemic have caused a spike in shipping and packages volume.
“While we welcome this boost in business, it’s important to point out that these increased volumes substantially increased work hours and expenses because packages are our most labor-intensive product,” Corbett says.
The growth in shipping and packages revenue isn’t expected to offset losses in mail revenue in the medium term or long term, he adds.
Overall, USPS recorded total revenue of $17.6 billion and total operating expenses of $19.8 billion during the quarter, leaving the organization with a net loss of $2.2 billion.
To return to financial stability, Corbett says the Postal Service must improve efficiency, reduce costs, innovate and grow revenue while achieving legislative and regulatory reform.
“I appreciate your active involvement in managing the levers we can control,” he says.