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.
To contact the editor, e-mail:
Most Popular Slideshows
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- Pope Francis: World War III Has Started On Piecemeal
- After Win Over Maidana, Mayweather Says He Is Prepared To Negotiate A Fight With Pacquiao
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
Join the Conversation
- Twitter Photo Of British Medical Muslima Student Holding Severed Head
- Australia's Imam Council Rebuffs Abbott Decision To Send Troops; Wants 'Islamic' Dropped From ISIS
- Pregnant Kate Middleton May Call Off Malta Trip Due To Sickness: Royal Couple Will Move To Amner Hall Residence
- Spying Claims Muddle New Zealand Election as Dotcom Calls Key Gov't An 'American Slave'
- Germany to Send Soldiers to Iraq, Bans Displays of Support for ISIS
- iPhone 6 vs iPhone 6 Plus vs Galaxy S5 and HTC One M8: Performance, CPU and Health
- Google Release Roundup: Nexus 5 2014, Nexus 6, Nexus 8 and Android L Killer Features
- Samsung Attacks iPhone 6 Plus Through New Galaxy Note 4 Commercial: Apple Claims Imitating Galaxy Note Phablets
- iPhone 6 And IPhone 6 Plus Sold Out, New Stocks To Arrive In October
- Moto G (Gen 2) vs. Xiaomi Redmi 1S—Specifications, Features And Price Showdown
- Nexus 6, 8 Release Dates Imminent as Moto X Pre-Order Begins & Nexus 7 Deals Ramp Up
- iPhone 6 And iPhone 6 Plus Shipping Has Begun, Expected To Reach Customers’ Doorstep On Sept 19 Launch Date