The U.S. postal service, which made a $900 million profit as recently as 2006, is on track to lose a whopping $7 billion this year. It's now considering drastic cuts.
>> How's inaudible today?
>> In his 14 years as a postal worker in Springfield Virginia Jerry Sibold's assumed spelling mailbag has never been this empty.
>> The biggest change is the volume of the mail that we're receiving.
>> Blame higher rates or business belt tightening; either way, the Postal Service which made a $900 million profit in 2006 is on track to loose 7 billion this year. That's despite shedding 25,000 career employees.
>> It is clear that weakness in the overall economy is continuing to have a profound, negative effect on our finances.
>> Especially in an internet age. Like so many companies Elite Occasions, a specialty gift store has gone online to communicate with customers saving 10 to $20,000 a year by emailing fliers, catalogues, and invoices.
>> Not only is it the cost of the postage but then it's also the cost of the printing that we have to take into consideration.
>> Desperate the Postal Service would like to close some post offices.
>> In cases where we have facilities that are blocks apart we may not need 2 retail outlets.
>> But congress does not allow the Postal Service to simply shutter locations in bad times or to reduce deliveries from 6 days to 5, another move it's been pushing for months. But Postal Unions are pushing right back even though their deliveries are down.
>> Businesses in America operate 6 days a week; they need 6 days a week.
>> Still the Postal Service says if something doesn't change it could run out of cash come fall. Nancy Cordes, CBS News Washington.
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