Mail, Cut Saturday Mail Delivery | featured news

The U.S. Postal Service lost $1.3 billion in the October to December quarter, an official said on Friday, days after the beleaguered mail agency announced plans to cut back on Saturday delivery to save money.

The U.S. Postal   Service will stop delivering mail on Saturdays but continue to deliver packages six days a week under a plan aimed at saving about $2 billion annually, the financially struggling agency says.

The U.S. Postal Service could save billions of dollars by ending Saturday mail deliveries, according to the Government Accountability Office. Postal officials — eager to stave off an estimated $7 billion in losses this year — think they can save about $3 billion annually by stopping weekend mail deliveries while still keeping post offices open on Saturdays.

The U.S. Postal Service would cut Saturday mail delivery starting in the first half of 2011 under a plan the agency will give its regulator tomorrow.