New Zealand Post could cut deliveries

New Zealand Post could ditch its Saturday service or even limit postal deliveries to every other day. The cost-cutting plans could be implemented as the operator attempts to deal with dwindling mail volumes.

Chairman Jim Bolger told media that the company has not yet decided a plan of action, but is putting all the options on the table, also mentioning that the operator has to balance community expectations with sensible business decisions.

Across the world, the majority of Posts have been hit by severe losses during the recent recession, prompted by falling volumes and the uptake of e-substitution. New Zealand Post’s profits dropped by almost 20% for the second half of last year, with volumes falling by 27m.

Postal unions across the country have expressed their disappointment at the prospect of cutting deliveries.

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