The Dept of Commerce uses FedEx exclusively, even for letters.
Departments are allowed to subcontract and the PO lost out because they were so expensive.
The public unions will take the PO to its grave, can't be stopped.
If the PO couldn't eliminate Saturday delivery, that has been proposed for over 20 years, they are obviously unable to save themselves.
A few things the post office can do to save money;
Eliminate Saturday delivery
Close down a large number of post offices and contract those services to private business. Postal carriers can service those drop box businesses, pick up and delivery. Why own a building staffed with personnel just to sell stamps and stuff mail boxes. Major tasks can be accomplished at a regional center. It works for UPS and FedEx, it can work for the post office.
Raise the cost of postage. The Post Office has a monopoly on first class mail.