Ailing U.S. Postal Service Strives to Avoid Twinkie Fate

November 27, 2012

While the Hostess Twinkie may not be as central to the U.S. economy as the mail, Postmaster General Patrick Donahoe sees uncomfortable parallels of iconic products within unworkable organizational structures. Like Hostess Brands Inc., where a labor impasse prompted the snack-food maker’s liquidation, the Postal Service, with 28 times Hostess’s workforce of 18,000, has been squeezed by labor costs and changing consumer tastes to the brink of extinction.

The post office’s insolvency is less imminent while no less ominous, with Donahoe projecting that the service expects to run out of cash in October without intervention from Congress....

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