PostNord Closes Letter Delivery Service in Denmark: 1,500 Employees Affected
Denmark's PostNord announces discontinuation of letter mail services
Danish post operator PostNord has decided to shut down its letter delivery service, affecting around 1,500 employees. In a statement, CEO Kim Pedersen explained that the rapid digitalization of communication has led to a drastic drop in letter volumes, rendering the service financially unviable.
accelerated digitalization
With Danes embracing digital methods of communication, the number of letters sent in the country has plummeted by 90% since 2000, and a further 30% in just one year between 2023 and 2024. The decline is so intense that the letter market is no longer profitable according to Pedersen.
The announcement comes a year after PostNord was released from its compulsory obligation to maintain full delivery coverage in Denmark, a change that resulted in a loss of state support for the company. With the loss of support, the cost of sending a letter with PostNord rose to 29 kroner yet was insufficient to offset the financial losses.
layoffs and opportunities within the organization
Of the 2,200 employees working in the letter delivery service, approximately 700 will be offered alternative positions within the organization. The remaining 1,500 jobs will be terminated, leaving the employees affected to bid farewell to their positions.
"For us to maintain a sustainable business, we must adapt and evolve. Unfortunately, this transformation involves difficult and painful decisions." Pedersen commented.
PostNord Denmark will continue to deliver parcels following the discontinuation of the letter delivery service. Meanwhile, PostNord Sweden will continue handling letter delivery. The company is also involved in parcel delivery in Norway and Finland.
Established in 2009 through the absorption of Post Danmark, PostNord is a joint venture owned by the Danish and Swedish governments, with the Swedes owning a 60% stake and the Danes owning the remaining 40%.
[1] Enrichment Data: decline in letter volumes driven by accelerated digitalization[2] Enrichment Data: results in financial unsustainability of letter delivery service[3] Enrichment Data: focus on parcel delivery services to drive competitiveness in e-commerce market[4] Enrichment Data: potential job shifts or retraining for employees in the focus on parcel delivery services[5] Enrichment Data: strategic investments in sustainability and efficiency in logistics
- The rapid digitalization of communication, prompted by the accelerated adoption of digital methods, has led to a 90% decline in letter volumes since 2000 in Denmark, making the letter market financially unviable for PostNord.
- With the loss of state support and the rise in the cost of sending a letter with PostNord, the financially unsustainable letter delivery service in Denmark has resulted in 1,500 job losses, while 700 employees are offered alternative positions within the organization.
- As a response to the decline in letter volumes and the growing importance of e-commerce, PostNord is focusing on parcel delivery services to drive competitiveness in the market, potentially providing job shifts or retraining opportunities for affected employees.
