La Poste coming under pressure to modernise
La Poste, the French state postal service operator, is coming under increasing pressure to modernise, reduce costs and debts, and improve services in the face of increasing competition from rivals using new technologies. Currently, the company’s debt amounts to 2.4 times its equity capital, excluding off-balance-sheet items, and its turnover is showing only sluggish growth. Required changes are said to include the modernisation of the company’s mail division and an improvement in the profitability of its express delivery service, as well as the adaptation of its nationwide branch network to the requirements of customers. Staffing costs are also said currently to be too high to allow operations to reach a sufficient level of profitability.
