The money-losing U.S. Postal Service will stop delivering mail on Saturdays in a bid to save $2 billion in annual costs, according to a published report.

While the Postal Service will continue delivering packages on Saturday, it will end six-day mail delivery in August, The Associated Press said Wednesday. A formal announcement is expected on Wednesday.

The move is the latest by the Postal Service, which last year lost $16 billion, to stave insolvency. In January it implemented a price hike for sending most types of mail, the second increase in prices since 2009.

postal service
The nearly bankrupt U.S. Postal Service said Thursday its net loss widened to $3.2 billion in the fiscal second quarter. Photo: Reuters

The Postal Service, which defaulted on payments to the federal government last year, has been ailing since 2006, when Congress ordered it to pre-fund health care benefits for future retirees.

It has responded with layoffs -- which are expected to hit 28,000 workers -- consolidation of offices and delivery centers as well as reduced budgets. 

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