Up to 90 jobs could go at Jersey Post

[TrueBlueTerrier]

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Up to 90 jobs could go at Jersey Post as the company continues to look for ways to save money.

The company needs to reduce its spending by £5 million by the end of next year. At the moment Jersey Post is only asking for volunteers to take redundancy.

In January this year, the organisation announced the first part of its business transformation plan with a voluntary redundancy programme for up to 80 workers. It's now having to increase that to a further 90.

Jersey Post say the move is a result of mounting losses in its traditional postal operation and the planned opening to competition of the fulfilment industry's bulk packet mail market.

Ian Carr, Chief Executive of the Jersey Post Group said: "The business transformation plan to remove £4.9 million of costs over the next 18 months is essential for Jersey Post's future survival. We currently rely on income from the large postal volumes we handle for the fulfilment sector, to fund the losses we incur in meeting the 'universal service obligation' to the Island's public. Planned further competition in the postal market and the continuing decline in traditional letter mail volumes makes reducing the scope of the universal postal service and shrinking our cost base vital to remove the reliance on cross subsidy.

Jersey Post's profits collapsed last year as letter mail volumes tumbled, profits in the fulfilment sector fell and growth in it slowed. With forecast losses about to be compounded by further competition, Jersey Post will become insolvent within a few years unless it takes radical action now."

[Lounge Lizard]

"We currently rely on income from the large postal volumes we handle for the fulfilment sector"
Perhaps Royal Mail should have a fulfilment sector.