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Posti to cut another 120 jobs

The postal service cites a drastic decline in the volume of mail deliveries as the reason for further staff cuts.

Postanställd på postcentralen i Lundo.
Posti is looking to reduce costs by 150–200 million euros over the next three years. Image: Yle/ Nora Engström

Finland’s state-owned postal service Posti announced on Monday it will begin discussion to reorganise administration and supervisory roles in its group production unit. This is the second round of workforce reductions announced by the company this year.

According to its preliminary estimate, the personnel reduction needed is a maximum of 120 permanent employees. Formal talks with employee representatives on the cuts are expected to start on the 23rd of this month.

Growing competition

Parliament liberalised postal services in 2016, leading to intense competition in delivery services. Although a fully state-owned corporation, unlike many other postal sector operators in Europe, Posti does not receive any financial support from the state.

Posti says it needs to reduce costs by at least around 150-200 million euros over the next three years. The number of letters delivered in Finland has decreased by half during the past decade, and the delivery volume of printed newspapers has fallen to 1950s levels. The declining volume of letters no longer covers the cost of weekday deliveries.

At the same time, Posti said it is targeting strong growth in e-commerce and logistics services, both of which are growth markets.

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