Czech Post announces additional layoffs

Czech Post has recently revealed plans to lay off a further 250 delivery workers by the end of this month as part of its major restructuring plan, which eliminates a total of 529 delivery jobs. Roughly half of the workers in these roles will move to another part of the company.

Last month, the company dismissed 574 employees as part of its previously announced strategy to close 300 branches nationwide in a bid to save money. In March, the state postal carrier said it would lay off “thousands” of employees; more redundancies are therefore planned in the coming months.

“The long-term trend in the demand for traditional postal services is decreasing. Over the past five years, interest in these services at [Czech Post] branches has decreased by 40 percent,” said the company’s spokesperson Matyáš Vitík earlier this year.

To mitigate the impact on the redundant employees, Czech Post has offered above-standard severance pay to those who have dedicated at least 15 years of service to the company. These individuals will receive a severance package equivalent to four times the average monthly salary. The company also remains open to negotiating further increases in severance pay if an employment termination is served in a shorter-than-normal notice period.

Although the number of layoffs was lower than initial estimates, trade unionists voiced their concerns about those still working at the remaining branches and in logistics, who may face overwork due to staffing changes, and increased responsibilities and workload. At present, around 22,000 people work for the company.

This downsizing comes after years of poor financial performance. Last year, the state enterprise reported a loss of well over CZK 1.5 billion. Interior Minister Vít Rakušan said that restructuring and job cuts were “essential” to ensure the firm’s survival in 2024 and beyond. Czech Post aims to save around CZK 700 million a year by shutting its branches.

Czech Post’s plan is to evolve into a branch operator that caters to services specifically ordered by (and for) the state, as well as turn into a competitive commercial delivery company. The firm is expected to execute this transformation within a two-year timeframe.