PostNord to cut up to 800 jobs, “possibly” sell Strålfors

The state-owned parent company of Sweden Post and Post Danmark said yesterday that most of the jobs to go will be in Denmark, and will be administrative or support jobs.

The company is also looking into the possible sale of its Strålfors communications business to provide investment capital for the rest of the Group and boost profitability.

The announcement came as the company reported its financial results for the third quarter of the year, in which its net sales were up almost 2.5% year-on-year to SEK 9.5bn (EUR 1bn), with net income up 29% to SEK 232m (EUR 25m).

PostNord’s year to date has seen its net sales up 1.5% to SEK 29.35bn (EUR 3.2bn), with net income down 7% to SEK 256m (EUR 27.5m).

“Unsatisfactory”

Håkan Ericsson, the PostNord chief executive, said e-commerce was driving growth in the company, countered by ongoing “sharp” declines in mail volumes and competition in the logistics market.

But, Ericsson said the level of profitability remained “unsatisfactory”, prompting fresh restructuring measures.

In the latest quarter, total mail volumes fell by 4% year-on-year, with a 6% decline in Denmark and a 3% decline in Sweden, despite being assisted by the mailing of personal health cards in Denmark and mail associated with Sweden’s general election.

In the year to date, mail has declined 4% overall compared to the same period last year, 10% in Denmark and 3% in Sweden.

PostNord is already in the process of merging its Swedish logistics business with its Swedish mail business into a PostNord Sverige AB subsidiary in order to cut costs and simplify the company’s legal structure.

The company is also set to simplify operations in Denmark in the beginning of next year, with head of PostNord Denmark Henning Christensen becoming managing director of Post Denmark A/S.