PostNord plans major cuts
PostNord will be reducing the number of its admin and support employees by 700-800 in order to save the company approximately SEK 500 million a year. The cuts will primarily affect its Denmark offices. The implementation of the program will begin during the fourth quarter 2014, when the restructuring costs will be determined and the necessary provision made. In addition, PostNord is set to announce further measures, mainly within production, to strengthen its long-term competitiveness. This news was revealed alongside the results of the organisation’s interim report for January –September 2014.
The report stated that although there has been a positive growth in e-commerce there have been sharp reductions in mail volumes and tough competition in the logistics market continue which has led to these cost-saving initiatives.
Total mail volumes for the Group has declined by 4% year-on-year: 6% in Denmark and 3% in Sweden. During the quarter, mail volumes were boosted by mailings in connection with personal health cards in Denmark and Sweden’s general election. The corresponding outcome for the year to date is a decline of 4% for the Group, whereof 10% in Denmark and 3% in Sweden.
Operating income for the Group improved during the quarter, to SEK 345m (242), as a result of actions taken. However, the level of profitability remains unsatisfactory and further restructuring measures will be necessary. The report reveals however that the organisation’s work on customized services is making good progress.
For example PostNord has signed agreements with CDON on coordination of their warehousing and distribution operations, and with Stadium in third-party logistics (TPL). In the heavy logistics sector, it also signed an agreement with Spendrups.
In September, its new terminal at Rosersberg went on stream. During construction of the facility, great care was taken to limit the environmental and climate impact; for example, the terminal’s energy supply needs are partly met by a solar power system. Volumes will be transferred in stages during 2014 and 2015.
