Australia’s struggling letters business is set to axe as many as 900 jobs as soon as Tuesday, with about 70% of the job losses to be from Melbourne.
The redundancies are expected to save $90 million a year in salaries.
“Non-customer-facing” jobs such as management, supervisory, administrative roles and IT staff, are set to go.
If the company’s letters delivery business continues as is, Australia Post could lose $12 billion between now and 2022-23.
Population growth and the number of new dwellings being built, along with less letters being sent, are the biggest problems for the postal service.
In 2010-11 the company to lost $122 million, $187 million the following year and $218 million last financial year. Just last month, the federal budget forecast dividends would shrink to zero within the next few years.
Chief executive Ahmed Fahour says “Without change and reform, Australia Post will not be able to survive.”
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