The United States Postal Service has hired restructuring advisers as it grapples with worsening finances and the risk it could run out of cash within the next year if no significant changes are made, according to a report by Reuters. The agency is seeking outside expertise to review its operations and finances while it works to stabilize its long-term outlook.
Postal officials say the organization’s financial situation has been under pressure for years as traditional letter mail, once its most profitable business, continues to decline. Mail volumes have fallen sharply from their peak, reducing a major source of revenue and contributing to billions of dollars in accumulated losses.
Postmaster General David Steiner warned that without significant changes the Postal Service could exhaust its remaining funds within about 12 months. The agency has been exploring ways to strengthen its finances, including possible price increases and new revenue strategies tied to its nationwide delivery network.
Despite the challenges, the Postal Service continues to deliver mail and packages to more than 170 million addresses across the United States six days a week. Officials say the restructuring effort is intended to help preserve that universal service while placing the organization on a more sustainable financial footing, according to Reuters.