Post Danmark - Postal service job cuts

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Disappointing half-year financial results force the national postal service to slash up to 600 jobs

Post Danmark is preparing to lay off several hundred employees despite posting a multi-million kroner profit for the first half of the year.

The national postal service’s financial results for the first half of the year show profits of 253 million kroner, down from 616 million kroner for the same period last year.

Managing director K.B. Pedersen yesterday announced 600 employees would be made redundant in the next six months. Post Danmark cut about 1,000 jobs last year.

The company’s financial statement shows that fewer letters and packages were posted this year, especially by small businesses.

In June, the state-owned mail service merged with its Swedish counterpart Posten AB to form Posten Norden, with Pedersen at the administrative helm. The merger was made in an effort to fight off the increased competition from private carriers expected to result from the European Union’s liberalisation of the postal market in 2011.

Petersen said the layoffs were necessary, but added the merger would help to lower operational costs considerably.

Expenses would be saved in information technology and other areas where jobs had doubled up, Pedersen said.