Postmaster general: USPS 'not going out of business'

Postmaster General Patrick Donahoe said Thursday that the United States Postal Service (USPS) will not go out of business despite its financial difficulties.

"The Postal Service is still a critical part of the American economy. We're not going out of business; we are not going to go out of business. What we are trying to do is get our finances in order, so that we can stay out there in business and provide excellent service for a long, long time to come," Donahoe said at a news conference in Washington. 

The Postal Service announced it was considering closing nearly 250 processing facilities, cutting equipment by 50 percent and slowing mail delivery in an extreme cost-cutting effort. It is looking for $3 billion in annual savings.

Donahoe said the post office needs to balance service with keeping costs down.

Read more on the USPS on The Hill's On the Money: Postal Service faces grim 'new reality'