Deutsche Post to charge for some free services to offset postal rate cuts

Deutsche Post World Net AG will try to partly offset the

mandatory cuts in its postal rates by introducing new products and charging for some services that are currently free, a spokesman said.

He said the company will try to stem the decline in sales “as much as possible”, but declined to give figures.

Yesterday, Deutsche Post said it expects sales to be down by 1.5 bln eur in 2003-2007 due to postal rate cuts, which were ordered by the postal regulator RegTP.

The company expects sales in 2003 alone to be down by 300 mln eur after the measures are implemented, and said it may close branches and cut up to 10,000 jobs.

In a statement today, Deutsche Post said its chairman Klaus Zumwinkel and Economy Minister Werner Mueller met yesterday afternoon to discuss the RegTP’s decision.

They agreed that any job losses would be carried out in a “socially acceptable way,” the statement said.