Smartphones and online business is causing the United States Postal Service to evaluate the status of nearly 4,000 of its nearly 32,000 retail postal locations.

The U.S. Postal Service said Tuesday it will begin the shift to a “village post office” model. The new business model would be operated by various local businesses, such as pharmacies and grocery stores.

The move could cost as many as 5,000 postal employees their jobs and leave some communities without a post office.

The Postal Service receives no tax dollars to cover operating expenses and collects its revenue from the sale of stamps and postal services.

According to some reports the post office closures could save the Postal Service approximately $200 million a year, as the agency battles what looks to be a second consecutive year with a more than $8 billion deficit.