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Post office considers cutting 2,000 staff

TT/The Local · 24 Feb 2010, 09:32

Published: 24 Feb 2010 09:32 GMT+01:00

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Posten Norden, which runs postal services in Sweden and Denmark, reported a net loss of 696 million kronor ($96 million) for the fourth quarter 2009, in comparison with a profit of 794 million in the corresponding period of 2008.

The firm on Wednesday announced a new austerity programme "to meet the uncertain market situation and other factors that affect our operations."

"It will mean fewer employees. And it is too early to say anything about that. But we cut almost 4,000 during 2009, across the two countries. It will not be as many during 2010, but perhaps we can say 2,000," the firm's CEO, Lars G Nordström told the TT news agency on Wednesday.

Some of the redundancies will be accounted for by attrition and by shifting full-time staff to part-time.

"In certain places compensation packages will be offered to encourage staff to go," Nordström confirmed.

Nordström assured customers that service levels will remain the same and that the redundancies are a reaction to declining volumes.

The firm reported a turnover of 11.6 billion kronor, down from 12.1 billion kronor the year before.

The full year result was boosted by capital gains of 2 billion kronor from the sale of a stake in the Belgian post office. Profits before tax amounted to 2.4 billion kronor, in comparison to 3.6 billion for the full year 2008.

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The board proposed a dividend, to the Swedish and Danish states, of 1.44 billion kronor.

Posten Norden was formed last year following the fusion of Swedish Posten and Danish Post Danmark. The comparative figures for 2008 are adjusted accordingly.

The firm has accounted for around 1 billion kronor in restructuring costs for the savings programme in its figures for the fourth quarter. The money is earmarked to fund restructuring, rationalization and modernization within all of the firm's business areas and service networks.

TT/The Local (news@thelocal.se)

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Your comments about this article

11:32 February 24, 2010 by sagar
i didn't get it

PBT was 2.4 BSEK and proposed dividend is 1.44, how does that make a net loss and how can the dividend be 60% if there is a loss ... accounting gimmick ?
12:25 February 24, 2010 by sleeplesssweden
The chicken have finally came to roost.A system where the CEO earns 900,000 monthly compared to its compay averga take home pay of 20,000 SEK was left ignored.

But of course ,everyone believes a socialist system is all about equality..there is no equality here rather a sysyem where the average and poor pay up to the hiher echelon classes in a sysyem of inequality

High time the zombies(average people) wake up and start asking the necessary questions needed for thier very own survival
13:49 February 24, 2010 by EtoileBrilliant
If only we could have a post service that offered the best of both the Swedish and UK systems.

UK - price. It is ridiculous that it costs more to send a package across Sweden than to have the same one delivered from the UK.

UK - 10.00am delivery and one on Saturday

Sweden - Post Office opening hours

Sweden - Post does not need to be delivered to the door (hallway in apartment blocks, post box facing road in villas, and local post office in rural areas).

Sweden - queuing system

Glad to have got that off my chest.
14:53 February 24, 2010 by tigger007
how in the hell does the post office lose money? everybody and their brother or sister using the post. when i heard that they privatised the post office i knew there would be reduced offices and reduced services. the postal system should have stayed under government control(like in the usa). some things shouldn't be privatised like health care and social security.i never heard of a postal service system having cutbacks. the swedish postal service should be swedens cash cow like the systembolget.
15:34 February 24, 2010 by sissygirl
I thought post rates were ridiculous here in the US. Sweden pays even more. But the Swedish mail is faster. I hope this doesn't make things worse.
16:28 February 24, 2010 by Twiceshy
tigger007 it probably has a lot to do with the fact that more and more people use email for personal and business correspondence as well as invoices.

But I'm just guessing here, I'm not familiar with their financial history.
17:12 February 24, 2010 by tigger007
twiceshy i think that you are right! the internet has been a big impact on the postal systems all over the world. i think the postal system in sweden has too many competors that can devliver mail. in the usa the us postal service is the only people that can handle letters(not ups,dhl,nor any other service). ups and dhl can only handle packages. it makes the usa postal service top dog( the usa postal can handle letters and packages).
18:21 February 24, 2010 by Nemesis
In the UK they have cut the workforce. That has turned the UK postal system into a disaster and will do the same here.
11:51 February 25, 2010 by Rick Methven
Well Posten can get rid of my postman. he is the most sour guy around will not deliver mail if he can not get direct access to my mail box, which is a bit of a problem right now with a 2 m high pile of snow. Get out of his van to put mail in the box never, that must not be in his rule book the a*shole
12:27 February 25, 2010 by karex
@tigger007 and twiceshy

Might also have something to do with competition: DHL and other private shipping companies usually deliver faster, cheaper and safer - you can track your package (course you can do that with normal post, just pay extra for "Rekommenderat", but then it is a matter of the already expensive turning ridiculously expensive).
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