The U.S Postal Service is considering cutting as many as 120,000 jobs after a second year of losses totaling $8 billion. 

The loss of mail to the Internet and the decline in advertising due to the recession have rocked the agency.

Post Office officials explained that without Congressional intervention they may not have the $5.5 billion necessary to cover future employee health care costs due Sept. 30.
    
"Our intent is to continue to deliver the mail, pay our employees and pay our suppliers." Postmaster General Patrick Donahoe said.

The agency said it's considering pulling its workers out of the federal retirement and health benefits plans and set up its own benefits systems. 
    
Both moves could face severe opposition from postal unions whose contracts ban layoffs.