WASHINGTON - August 3, 2009 - The postal service is considering closing as many as 1,000 local offices, as it battles staggering financial problems.

The post office has been struggling with a sharp decline in mail volume as people and businesses switch to e-mail both for personal contact and bill paying. The agency is facing a nearly $7 billion potential loss this fiscal year, despite a 2-cent increase in the price of stamps in May, cuts in staff, and removal of collection boxes.

Also on the block are branch offices across the country; postal officials sent a list of nearly 700 potential candidates to the independent Postal Regulatory Commission.