Sharechat Logo

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

Wednesday 26th June 2013

Text too small?

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

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured
Air NZ to amend booking engine after lawyer’s complaint
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes

IRG See IRG research reports