NZ Post outlets set to close

A number of New Zealand Post workers are set to lose their jobs as the company looks to cut costs by closing outlets.

NZ Post chief executive Brian Roche would not say how many shops would close down, but said it was likely to be fewer than 20.

The move was sparked by falling mail volumes as more people used the internet.

"Our mail volumes have been declining for 4 to 5 percent a year," Mr Roche told Radio New Zealand.

"We have to address that problem, if we have got less volume and the same level of fixed costs the two don't go well together."

Mr Roche said there was no plan to relive the post office closures of the 1980s, and that there was a minimum number of outlets required around the country to provide post.

"The Government regulates that, it's just over 200 and currently we've got over 300 stores and, I think, another 600 outlets, so we're a long way from those standards," he said.

"We've got a problem, we have to work through it and we've got to work out where technology fits."

NZ Post chairman Michael Cullen last month told a parliamentary commerce committee difficult trading conditions and a flat economy continued to negatively affect business.

"One of the issues is that Kiwibank has been staffed and organised on the assumption of very strong growth," Dr Cullen told the committee.

"At any particular point in time it's staffing is reflecting the anticipated needs for the growth of the next phase rather than it's current service delivery profile. As a consequence its actual cost ratio is actually quite high by banking standards.

"This period of slow growth, which is going to be inevitable for Kiwibank over the next year or two, is probably an opportunity to address more firmly that issue of cost reduction within Kiwibank itself."