Posti begins cooperation negotiations in order to reorganize its work in administration and service production due to the decline in mail volumes. Posti continues to renew its postal operations in order to improve competitiveness and secure profitability.
The postal and media industry is undergoing a 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. An average, Posti delivers to Finnish households only 8 delivery items per week. In the coming years, the amount of mail continues to decrease rapidly as the communication of citizens, companies and public sector becomes digital.
The need for savings amounts to approximately 150 - 200 million euros in the years 2019–2021
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. The declining volume of letters no longer covers the cost of five-day delivery.
The Parliament of Finland opened up postal services to full competition in 2016 and, as a result, competition in delivery services has intensified. Posti operates on market terms. Posti’s operations are financed by service charges paid by customers and Posti does not receive any support from the State, unlike many other postal sector operators in Europe.
New growth is sought through investments
At the same time, Posti aims 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.
At the core of Posti’s strategy are 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.
Cooperation negotiations start in the first week of February
The cooperation negotiations concern both administration and service production. According to a preliminary estimate, the personnel reduction need is a maximum of 236 employees. In addition to the need to make reductions, there is a significant need for changing permanent positions to part-time positions and laying off employees temporarily in service production.