An Post boss warns firm 'heading for insolvency'
An Post CEO David McRedmond told workers the company will be loss-making again next year unless action is taken.
Addressing members of the Communications Workers' Union in Portlaoise, Mr McRedmond said downsizing would have to take place at the company despite the 28 cent rise in the cost of a stamp.
When he joined the company last September, Mr McRedmond said it was "dramatic and stark how bad the finances were".
The former TV3 boss told the union members that "it was clear that An Post was heading rapidly for insolvency".
"If we had not got the price increase, An Post was on target to lose €50m this year. That's the importance of the price increase, but it only keeps us cash positive for a year. In a year's time we will be in the same position again and our ability to do more price increases is going to be halved by what customers are prepared to pay."
It is understood An Post is now looking at several possibilities for the future of the service.
These are believed to include the closure of more than 400 rural post offices, the axing of two temporary sorting centres in Dublin, and the downsizing and the possible closure of two of An Post's four sorting centres as the company looks to parcel deliveries for increased revenue.
The four permanent sorting centres are located in Cork, Dublin, Portlaoise and Athlone. The mail centre in Athlone is believed to be most under threat, while operations at Portlaoise, which deals with parcels and mail, could be scaled back.