This is so sad to me. My father told us all this would happen years ago when they first put in the machines to sort the mail. He had to learn to work them and repair them. It cost a lot of money, and they put employees out of work then. Don't know if dad knew home computers would ever come into play back then, but he knew somehow financial failure was on the way. In fact, when he retired there were issues with receiving retirement pay and it was greatly reduced two years afterward. He passed a few years ago in great debt. He did not have enough income coming in to pay all the bills, so he was charging groceries, gas, dr. bills, etc... Dad worked for them after he came home from Vietnam until he retired.
I have no idea what a solution is. I do think that any postal service will need the regulations and penalties that the Government currently offers as private would just run amok. There are a few cases already of postal employees dumping mail b/c they did not want to deliver it, or stealing credit cards or checks. Very few because Federal Prison is the outcome. That would rise tremendously if a private company were in place, and as wfg said above, the costs and availability would be outrageous and impossible.
It seems, if you read the entire recently posted article Reader linked, that the problem is not only being blamed on less mail (which makes no sense with all the internet packages) but also employee benefits. Sorry to say this is everywhere now. Not many get any benefits, I for one, have none and have had my job for nearly 20 years, no retirement, nothing. I have to hope to stay employed until I die, which may not be possible. I don't understand where the funds go, what mismanagement happens, but we are not the America I was taught to believe in anymore. Perhaps space programs (Government funding that could be used more practically and is necessary elsewhere) that cost billions could be stopped. We are not going to live anywhere out there anytime soon, so let another country worry with that.
I don't mind no Saturday mail, but I can tell you the carriers are having it hard enough with the staff cuts and route changes - which is longer harder routes for the still employed carriers. Our business and personal mail in this City is never delivered until well after dark. On Mondays, after no Sunday delivery, you can expect to see letter carriers still delivering up to midnight with little lamps on their hats to see. A friend walked with one during Christmas just because it was dark and did not seem safe to him. Scary stuff.