US postal service to cut costs

The US Postal Service is facing a severe debt crisis after it reported a $5-billion in losses last year. It relies on the sales of stamps and other products rather than taxpayer funding and has limited alternatives for shoring up its finances.

It says it needs to reduce its operating expenses that involves renegotiating labour contracts, eliminating thousands of jobs and restructuring its health and retirement programmes.

Now, the agency is considering shutting down more than one-fifth of post offices and processing facilities in order to help balance its books. But it is a move that will hit hundreds of remote communities across the country especially hard.

Al Jazeera’s Cath Turner reports from Arkansas.