Australia Post, facing rapid decline in letter delivery, plans to cut 1,900 jobs over the next three years, mainly from voluntary redundancies.
Losses from the company’s mail delivery business are heading towards $500 million for the current financial year.
This result will take the cumulative losses in the mail business to more than $1.5 billion over five years.
Managing director Ahmed Fahour says there will be no forced redundancies. Australia Post is budgeting $190 million for voluntary redundancies.
“We have reached the tipping point that we have been warning about where, without reform, the business becomes unsustainable,” Fahour said in a statement.
“We welcomed the Federal Government’s decision to support reform so we can manage the mail service losses, meet the changing needs of our customers and continue to invest in growing parts of our business such as parcels and trusted services.”
Without regulatory reform, Australia Post would lose $12.1 billion from its letters business over the next decade. Australia Post as a whole would be short $6.6 billion.
Australia Post had been looking at a two-tier delivery system, with one faster than the other and with higher stamp costs.
Fahour says there is no change to the current five day a week letter delivery.
Profits were down 56% to $98 million for the first half and Australia Post is heading for its first full-year loss in more than 30 years.
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