The Postal Service plans to drop Saturday delivery of first-class mail beginning the first week of August, a move that the financially struggling agency said will save $2 billion annually.

The Postal Service is cutting costs aggressively as it grows increasingly frustrated that Congress is dragging its feet in authorizing a structural overhaul that could stabilize the agency.

The agency, which lost $16 billion last year, has blamed much of its recent troubles on a 2006 law that requires it to make massive payments into its future retirees' healthcare fund, as well as on reduced mail volumes as Americans increasingly turn to email and online communications rather than dropping a stamped letter in a postal box.

Some experts have previously estimated that the Postal Service could run out of cash by October.

Read more at Reuters