Posti announces job losses

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Finnish postal operator Posti Group has announced a series of job cuts after predicting a loss in net sales of €75m (US$82m) for 2016. The post has said that the job cuts are necessary in order to combat the changes arising from digitization and the reduction in mail volumes.

In 2015, the number of delivered letters and other addressed shipments decreased by 102 million, or 8%, when compared with the previous year. This led to a loss in income of approximately €75m (US$82m), with the same expected for 2016.

The 860 job losses will be made in the production, administration, sales and customer service departments and will concern approximately 7,600 staff out of a total of more than 21,000 employees. Posti is aiming to conduct the majority of cuts through voluntary arrangements, retirements, lay-offs and other actions.

Heikki Malinen, president and CEO of Posti, said, “Digitalization has already reduced overall delivery volumes to the level of the 1960s. 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.”

February 3, 2016

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Helen has worked for UKi Media & Events for nearly a decade. She joined the company as assistant editor on Passenger Terminal World and since progressed to become editor of five publications, covering everything from aviation, logistics and e-commerce to meteorology. She has a love for travel and property and has redeveloped three houses in three years. When she’s not editing magazines, she’s running around after her two boys and their partner in crime, Pete the pug.

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