: Canada Post said Tuesday that efforts made to cut costs and streamline operations were not enough to balance out lower mail volumes, resulting in a pre-tax loss of $104 million in the second quarter.
Photo Credit: Andrew Vaughan/Canadian Press

Digital shift drives down postal revenues

Canada’s postal service reported a loss of $104 million this quarter as people increasingly abandon the mail and turn to on-line communications. Canada Post says the “historic shift” to digital communications has eroded mail volumes at an “accelerated pace.” As a crown corporation, Canada Post is owned by the state but operates at arm’s length from government.

Canada Post is in consultations to decide how to adapt to “avoid becoming a financial drain on taxpayers.” It continues to cut costs by reducing wages for new employees and eliminating the banking of sick days. It is also shortening hours at its less used retail postal outlets and consolidating mail processing.

The way the announcement about the losses was made seems to indicate Canada Post may be preparing the public for a greatly reduced postal service.

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