USPS to drop Saturday service

The U.S. Postal Service has put plans in motion to phase out Saturday service for standard mail delivery.

The plan - which would not affect package delivery - is scheduled to begin during the week of Aug. 5. The postal service expects to realize savings of $2 billion per year, according to a news release.

“The postal service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America’s changing mailing habits,” Postmaster General Patrick Donahoe said in the release. “We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings.”

Saturday service for packages also had been on the chopping block, but the postal service reconsidered after realizing a 14 percent volume increase since 2010, as well as projections for continued growth.

“As consumers increasingly use and rely on delivery services — especially due to the rise of e-commerce — we can play an increasingly vital role as a delivery provider of choice and as a driver of growth opportunities for America’s businesses," Donahoe said.

Post offices already open on Saturdays will continue to hold hours those days, the release said.

Saying the USPS is responsible for returning itself to long-term financial stability, Donahoe said the plan calls for a combination of employee reassignment and attrition.

In November, the postal service announced a fiscal 2012 net loss of $15.9 billion, a record loss for the entity. The body's fiscal year ended Sept. 30.