| 8.9°C Dublin

An Post cuts 2,000 jobs as letters drop

AN POST is to cut almost 2,000 jobs over the next four years because people are sending fewer letters.

The company has reported a loss after tax of almost €25m for last year and mail volumes dropped by 7pc.

More than 300 people left the company last year but An Post needs a further 1,600 job cuts before the end of 2015.

Despite the job-loss plan, An Post chief executive Donal Connell says the business improved across all of its key aspects last year.

"We will continue to align the company, its structures and resources with the changing business reality and we look to the future in this fully liberalised mails market with confidence and a strong belief in our ability to deliver on every level," he said.

The company blames last year's losses on the downturn in business generally, increased competition and falling volumes of mail.

It also says the figure of almost €25m is mainly due to the extra costs linked to a voluntary redundancy programme.



dropped

An Post mail volumes dropped by 7pc and the company says part of that was due to the severe weather at the end of the year. It followed a 10pc drop in 2009 and mail volumes are expected to fall by a further 5pc this year.

The State company had already announced plans to reduce its staff by 1,375 by 2012 but this target was increased yesterday to 1,975 by 2015.

An Post says it hopes to achieve the cuts by voluntary redundancies and natural wastage. About 330 staff have already left the business as part of the plan.

The company's trading profit increased slightly to €5.8m, which was helped by a 3.5pc reduction in its day-to-day costs.

Exceptional costs and other financial charges, which amounted to €30.6m, resulted in a trading loss of €24.7m.

Commenting on the results, An Post chairman John Fitzgerald said: "Significant cost savings were achieved in relation to pay and non-pay costs.

"Capital expenditure of €47m was invested in areas critical to the company's future success such as parcel and packet services and new retail products."

csheehy@herald.ie


Privacy