An Post: 1,600 jobs to be lost

LESS demand for the postal service and increased competition from electronic media have been cited as the primary reasons for 1,600 job losses at An Post.

The company has already cut 730 positions over the past two years.

Pointing to a fall of 17% in mail volumes in two years, the national postal service said it also expected volumes to drop a further 5% this year.

Announcing the fresh round of job losses the company also revealed its business mail service — which accounts for 90% of its mail operation — had been particularly badly hit in recent years.

The company was more upbeat about its retail business and parcel delivery service, however, and noted both were still performing well.

An Post said the job cuts would be achieved through voluntary schemes, non-replacement of staff and overtime reduction.

The news came as An Post reported pre-tax losses of €24.7 million for last year. This follows losses of €25.6m in 2009 in what it called its most commercially challenging year ever. Profit before tax in 2008 was €39.9m.

Chief executive Donal Connell said An Post will continue to align the company, its structures and resources with the “changing business reality”.

“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.

“As a critical channel for every aspect of Irish life and business, a major employer across the state and a significant buyer of goods and services, An Post can be relied upon to play a full and active part in the national recovery programme.”