Cooperation negotiations concerning the reorganization of administrative duties at Posti have been ended. The need for personnel reduction was reduced to a maximum of 59 employees (the preliminary estimate for reduction need was 106) due to transfers to new positions within Posti and voluntary arrangements. The negotiations are resulting from drastic mail volume decline, which requires Posti to continue the renewal and ensure its profitability.
The postal industry is currently undergoing dramatic transformation. The number of letters delivered in Finland has decreased by half within ten years, and the delivery volume of printed newspapers has fallen to 1950s’ levels. Posti needs to reduce costs by at least approximately EUR 150–200 million over the next three years. These cost savings are required due to the substantial decline in mail volumes. In the coming years, the amount of mail continues to decrease rapidly as the communication of citizens, companies and public sector becomes digital.
“We have made rearrangements to seek effective entities and opportunities to utilize technological solutions. Our customers require from us digital capabilities and ability to response fast to their rapidly changing needs,” says Posti’s CFO Tom Jansson.
“New tasks were also created in the reorganization, and we are all pleased to see some of new positions have been filled by employees from the target group of the negotiations. The voluntary arrangements and Posti’s New Path program reduced the need for redundancy, as well.”
According to Jansson, the reform takes into account that Posti operates in several countries, currently in a total of 11 countries. During the negotiations has been viewed, how and where operations could be performed in a most sensible and efficient way. One of the target groups of the negotiations has been Posti Service Center. It is operating in several locations in Finland (e.g. Helsinki, Turku, Tampere and Oulu) and in Estonia (Tallinn), Sweden, Norway, Latvia and Lithuania.
“We have excellent teams outside of Finland as well. We are transferring to the Service Center teams in Tallinn those administrative tasks that are already being performed there. According to the current estimate and as a result of the cooperation negotiations, total of 14 new tasks will be created in Tallinn,” says Jansson.
“We want to support our personnel in this transformation. We are providing support in many ways, e.g. our New Path program. In addition, we are offering supported opportunity to employees to move working in Tallinn, depending on each individual’s circumstances.”
Besides cost savings, Posti aims at same time for strong growth in e-commerce and logistics services, which are both growing markets, in line with its strategy. The changes in the business environment and customers’ needs mean that Posti must invest in new types of services, digitalization, technical solutions and competence.
The Posti’s strategy consists the following focus areas: to win e-commerce play, keep mail relevant to customers, rething Logistics, renew service culture Posti Orange and to be digitally powered to secure service delivery.