Posti to cut 124 permanent jobs

Posti on Monday announced that it will initiate cooperation negotiations in early April. According to a preliminary estimate, the reduction need is a maximum of 124 permanent employees, said Posti in a press release.

The change would be carried out gradually by the end of 2020.

Posti needs to reduce costs by at least approximately EUR 150–200 million over the next three years.

These cost savings would be required due to the substantial decline in letter and publication volumes alone. The need for savings is based on changing customer needs as well as the costs of Posti’s own outlets – central locations or flexible opening hours cannot be maintained in a cost-effective manner.

A total of 97% of Posti’s retail network is made up of service points maintained by Posti’s partners, i.e. service points set up in connection with different service providers. The cooperation negotiations do not concern service points maintained by Posti’s partners.

Posti is in the process of renewing its retail network in accordance with the demands imposed by e-commerce growth and changing customer needs. The number of Posti’s service points is increasing in total as according to plans there will be over 2700 service points in 2020. Customers would like Posti’s service points to have extensive opening hours and be located near other services.

“The current renewal measures are based on significant changes in the way people move, spend their time and use services. Our customers want to use the postal service in connection with taking care of other errands, such as buying groceries. Finns appreciate easy services,” said Lasse Huttunen, Director of Retail Network.