Canada Post In $327M Operating Loss, Cuts Likely
By IBTimes Staff Reporter | February 14, 2013 9:15 PM EST
Canada's largest mail carrier, Canada Post is likely to cut down its services as a result of $327 Million operating loss it faced after sixteen consecutive years of annual profits.
The Canada Post is considering reducing the mail delivery from five to four, or three days per week according to CTV news.
"That rapid decline is creating a postal sinkhole," the CTV news quoted Jon Hamilton, spokesperson of Canada Post, as saying.
The post is planning to shutdown some of the 6,500 retail outlets in the country and to consolidate its 21 centres just within major cities.
The operating loss is as a result of weakening demand for post mail services as people have become more inclined to using email and phone calls than traditional mail services.
"And without more transformational changes, we're going to find ourselves in a bind," Jon Hamilton told the CTV news.
However, the postal workers' union, CUPW, said that the post should not reduce its services in order to keep it floating.
"They're cutting the link with the public and the citizens of the country," CTV news quoted CUPW national president Denis Lemelin, as saying.
"And that's bad for us."
The Canada Post gained $142-million annual profit in 2010.
Apart from Canada Post, the U.S. Postal Service also announced that the post will cancel its delivery service on Saturdays. By cutting down the Saturday service, the U.S. postal service is expected to save about $2 billion annually.
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