(PTI): The US Postal Service (USPS) has reported a $3.8 billion net loss for its 2009 fiscal year that ended in September, despite measures to cut costs by $6 billion.

According to a report released Monday, the agency delivered 26 billion fewer pieces of mail in fiscal 2009, showing a 13-percent decline as the global economic downturn has taken its toll.

The report also revealed a fall of around 9.1 percent on operating income to $68.1 billion in 2009 fiscal year from $74.9 billion last year.

The USPS has already cut 40,000 jobs and reduced overtime hours.

“Our 2009 fiscal year proved to be one of the most challenging in the history of the Postal Service,” said USPS chief financial officer Joseph Corbett.

“The deep economic recession, and to a lesser extent the ongoing migration of mail to electronic alternatives, significantly affected all mail products, creating a large imbalance between revenues and costs,” he said.