Mail decline forces Posti to cut up to 59 jobs

National postal and logistic services operator Posti will reduce up to 59 employees following drastic mail volume decline, said an official press release on Thursday.

Cooperation negotiations in this regard have been ended. The need for personnel reduction was reduced to a maximum of 59 employees (the preliminary estimate for reduction need was 106) due to transfers to new positions within Posti and voluntary arrangements.

The postal industry is currently undergoing dramatic transformation. The number of letters delivered in Finland has decreased by half within ten years, and the delivery volume of printed newspapers has fallen to 1950s’ levels.

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

These cost savings are required due to the substantial decline in mail volumes. In the coming years, the amount of mail continues to decrease rapidly as the communication of citizens, companies and public sector becomes digital.

“We have made rearrangements to seek effective entities and opportunities to utilize technological solutions. Our customers require from us digital capabilities and ability to response fast to their rapidly changing needs,” said Posti’s CFO Tom Jansson.

According to Jansson, the reform takes into account that Posti operates in several countries, currently in a total of 11 countries. During the negotiations has been viewed, how and where operations could be performed in a most sensible and efficient way. One of the target groups of the negotiations has been Posti Service Center. It is operating in several locations in Finland (e.g. Helsinki, Turku, Tampere and Oulu) and in Estonia (Tallinn), Sweden, Norway, Latvia and Lithuania.