The United States Postal Service (USPS) warned investors on Thursday that it must continue to cut costs or risk a government bailout, after reporting a $9.5 billion net loss for fiscal year 2024.

The Postal Service reported losing more than $100 billion since 2007, but began implementing a 10-year restructuring plan in 2021 that aims to eliminate $160 billion in projected losses over the next 10 years.

The USPS said the net loss in 2024 was three billion more than the previous year. The cost difference is largely due to an annual increase in non-cash workers’ compensation expenses, according to Reuters.

“If we do nothing more, we remain on the path to either a government bailout or the end of this great organization as we know it,” the Postal Service said in a restructuring plan Thursday .

The decline was also partly due to a loss in shipments, even after the service increased the costs of its stamps in July.

Despite the warning, Postmaster General Louis DeJoy still expressed optimism about the service’s financial future. The service also saw an increase in revenue last fiscal year, which increased 1.7% to $79.5 billion. by CBS News.

The Postal Service said that even if there is a larger loss in fiscal 2024, it does not plan to reduce the number of retail locations nationwide.

Misty Severi is an evening reporter for Just The News. You can follow her on for more coverage.