US Postal Service Aims for Financial Turnaround Through Expansion and Innovation

Sat Nov 15 2025 01:36:06 GMT+0200 (Eastern European Standard Time)

Postmaster General David Steiner emphasizes the need for the U.S. Postal Service to grow its revenue base and explore innovative delivery solutions amidst ongoing financial challenges.

Postmaster General David Steiner urges the Postal Service to expand its offerings beyond cost-cutting measures to achieve financial stability. Recent forecasts indicate a $9 billion net loss, despite an increase in revenue. The service aims to enhance last-mile delivery collaboration with retailers while modernizing operations and utilizing AI technologies to boost efficiency. Steiner also reassured that there are no plans for privatization.

The U.S. Postal Service (USPS) cannot solely rely on financial cuts to resolve its fiscal challenges, according to Postmaster General David Steiner. During a recent Postal Board of Governors meeting in Washington, Steiner stated that the 150-year-old USPS needs to broaden its revenue-generating strategies and leverage its commitment to deliver to every address in the nation.

I’ve taken to saying that we cannot cost-cut our way to prosperity, Steiner emphasized. He noted that partnering with private delivery companies, such as UPS, to expand their last-mile delivery services could be a critical step. This segment of delivery accounts for significant labor and costs, making it essential for the USPS to create offerings for both retailers and individual consumers, including same-day and next-day delivery options.

The USPS released a financial report revealing operating revenue of $80.5 billion for the past fiscal year, yet it endured a net loss of $9 billion—markedly better than the prior year's $9.5 billion loss. Amber McReynolds, re-elected chair of the Postal Board of Governors, highlighted excessive historical restrictions as significant barriers to financial sustainability, urging for legislative action to facilitate long-term stability.

Concerns were raised regarding the USPS's required significant contributions toward its retiree system, which differ from other federal agencies. McReynolds called for a reevaluation of the agency’s outdated pricing structures, workers' compensation, and borrowing limits from the 1990s.

In addition to financial restructuring, Steiner underscored the necessity for increased efficiency, advocating for the introduction of artificial intelligence into logistics. To do all of this, we need capital and the ability to leverage our assets, he stated, stressing the need to borrow more flexibly, akin to private sector competitors.

Steiner pledged to continue the $40 billion modernization plan initiated by his predecessor, Louis DeJoy, emphasizing improvements in service delivery timelines and operational readiness for the upcoming holiday season. With substantial investments in mail processing and logistics infrastructure, he noted a stable workforce minimizes the need for extensive seasonal hiring.

While fears of privatization persist, with references to earlier discussions involving former President Trump, McReynolds firmly stated, There are no proposals or plans to privatize the postal service, reinforcing the commitment to maintain the USPS's status as a federal agency dedicated to public service.