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Bloomberg reports this morning that after having posted a net loss of $5.1 billion during the 2011 fiscal year, the US Postal Service (USPS) is projecting that it will have “a record $14.1 billion loss for the 2012 fiscal year as a drop in mail volumes accelerates.”

“We continue to see steady declines, unfortunately, in first-class mail, which is our most profitable product,” Postmaster General Patrick R. Donahoe said yesterday. “We have to build tomorrow’s postal service based on revenue and volume projections as we look forward. We can’t look backward.”

USPS is projecting that mail volume is likely to drop by six percent during the 2012 fiscal year, significantly exceeding the two percent annual drop that it had been forecasting.
KC's View:
Dead business model walking.