The U.S. Postal Service (USPS), which has been cited for decades as a case study in government inefficiency, waste, and top-heavy bureaucracy, has announced that it will make deep cuts to its staffing, as well as overhaul the generous benefits package it provides to employees. According to the Federal Times, the USPS will cut 120,000 workers — about a third of its work force — by 2015. In addition, the government agency is seeking to set up its own health benefits plan for postal workers, as well as eliminate pensions for new employees.

“The Postal Service is essentially bankrupt and will run out of cash next month, which is forcing it to take drastic steps to cut costs,” reported the Federal Times. In a draft document of the plan, one USPS official waxed candid about the agency’s dire financial state, noting: “If we were a private company, we already would have filed for bankruptcy and gone through restructuring — much like major automakers did two years ago.”

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