U.S. Postal Service reacts to losses

WASHINGTON, Nov. 17 (UPI) -- Rain, sleet and hail notwithstanding, the U.S. Postal Service said it would cut service hours after losing $2.8 billion at the end of the 2008 fiscal year.

With national mail volume dropping 4.5 percent in the year ending Sept. 30, the agency is offering 156,000 employees early retirement, said spokesman Gerald McKiernan, USA Today reported Monday.

In the fiscal year, volume dropped by 9.5 billion pieces of mail with much of the decline attributed to lower mailing volume by banks, retailers and real estate companies, McKiernan said.

The agency is also cutting some routes. "As volume goes down, you have to evaluate the routes," said Larry Dauby, postmaster in South Bend, Ind.

But, changed routes doesn't mean service will shrink, Dauby said.

McKiernan told USA Today, "We hope these changes go unnoticed by the customer."