NZ Post to cut 120 jobs, shrinking mail processing to 3 sites from 6

Wednesday 26th June 2013

New Zealand Post, the state-owned postal service, will reduce its processing centres to three from six, shedding a net 120 jobs, as it seeks to rein in costs in the face of falling mail volumes.

Mail will be processed at mail centres in Auckland, Palmerston North and Christchurch and processing will end at its Hamilton, Wellington, Dunedin and in satellite processing sites, the Wellington-based company said in a statement. The changes will be phased in through 2014.

"The number of pieces of mail being processed has fallen by nearly 200 million in the last decade," said chief executive Brian Roche. "We looked at all options and decided this plan will allow New Zealand Post to achieve savings on a meaningful scale while maintaining a high-quality service across New Zealand."

Roche said mail volumes are falling by about 8 percent a year. Growth in the postal service's parcel delivery business isn't enough to make up for the decline, he said on a conference call. Savings would amount to $20 million to $30 million "over time."

"Not to make the necessary changes now would imperil a network which is a vital component of the New Zealand economy and community," he said. He can't rule out further changes.

BusinessDesk.co.nz

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