Japan Post to Accelerate Restructuring before Privatization
Japan Post said Wednesday it plans to scrap mail pickup and delivery services at 1,048 of 4,696 post offices with such functions across the country, in a bid to accelerate the pace of reorganization ahead of its privatization in October 2007.
The planned measures would allow Japan Post to abolish the jobs of some 1,000 workers nationwide, leading to annual cost reductions worth about 10 billion yen from fiscal 2009, according to Japan Post’s restructuring plan.
Until now, Japan Post has ended its mail pickup and delivery services at 40-50 offices annually.
Such post offices will be changed into ones that offer only over-the-counter services.
The privatization of Japan Post will split the public enterprise’s postal insurance, postal savings, mail, and over-the-counter operations into four separate companies, all of which will be placed under a holding company.
