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Posti to slash up to 860 jobs

Citing an increase in digitalisation which has reduced mail volume in Finland, national postal company Posti announced Tuesday that it would cut up to 860 jobs and would begin employer-employee negotiations next week.

Postin myymälä Joensuussa
Image: Esa Huuhko / Yle

In what the Posti CEO characterised as a "very dramatic structural transformation," and citing a sharp decline in mail deliveries, national mail service, the company says it plans to cut up to 860 jobs in several departments.

In a press release Posti president and CEO Heikki Malinen says that mail volume these days is at a nearly fifty-year low.

"Digitalisation has already reduced overall delivery volumes to the level of the 1960s, Malinen stated.

The company said "communication will increasingly take place via the Internet, while the delivery volumes of printed mail are constantly falling."

According to Posti, in 2015 the number of delivered letters and other addressed shipments decreased by 102 million - an eight percent drop - from the previous year.

Transformation historically dramatic

"Therefore, we must adapt and reform our operations in order to ensure that Posti will still maintain its financial capability to build new business in order to compensate for mail delivery. The transformation is historically dramatic so, unfortunately, we also have to target savings to our personnel. I´m confident that in future we can also create jobs, especially in parcel and logistics services," Malinen stated.

Malinen said that Posti's current result is not in line with its target level.

"Posti's cost structure is still too high. We can only cope, invest and maintain jobs by operating in a competitive manner," Malinen said.

Employer-employee negotiations are slated to begin on February 2, and according to the company reductions will be sought through voluntary arrangements, retirement, lay-offs and other actions.

The cuts will affect production, administration and sales and customer service departments, according to the release.

The sphere of negotiations affects a total of some 7,600 Posti employees – and "no more than 860" of those would be losing their jobs.

As of September of 2015 Posti employed more than 21,000 people.

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