NZ Post cuts 120 jobs, halves mail processing sites
Processing will end at Hamilton, Wellington, Dunedin and in satellite sites | The changes will be phased in through 2014
New Zealand Post, the state-owned postal service, will reduce its processing centres to three from six, shedding 120 jobs, as it tries 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 says 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," chief executive Brian Roche says.
"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."
He says mail volumes are falling by about 8 percent a year. Growth in the postal service's parcel delivery business is not 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 cannot rule out further changes.
(BusinessDesk)
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NZ Post cuts 120 jobs, halves mail processing sites
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