Canada Post said Tuesday it has cut an unknown number of positions as part of its government-mandated restructuring efforts and a goal to “align our management team.”
The company said the changes “will align with the government’s expectation that leadership and structural change from within the Corporation is essential,” alongside a series of reforms to the financially struggling company’s mail delivery service announced last month.
“This is part of our corporate-wide restructuring efforts to better align our management team with the future needs of the organization,” Canada Post told Global News in a statement.
“Canada Post must take decisive action to deliver the services Canadians need in a way that is financially sustainable.”
The company shared a message sent by president and CEO Doug Ettinger to senior Canada Post leaders announcing the changes.
“Earlier this week we informed some of your colleagues that their positions were no longer required,” Ettinger writes. “These changes are a continuation of our corporate-wide restructuring efforts to better align our management team with the future needs of the organization.
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“While these decisions are sometimes necessary, they are never taken lightly.”
Both Ettinger and Canada Post said they would not be sharing specific details as the company continues to work on its “transformation plan” that implements the government’s reforms.
Government Transformation Minister Joël Lightbound asked Canada Post on Sept. 25 to come back with a plan within 45 days on how to transition remaining door-to-door mail delivery to community mailbox services, as well as close some post offices in areas no longer considered rural. The reforms also include relaxing letter mail delivery standards.
The minister said the changes will save Canada Post hundreds of millions of dollars annually. The company reported over $1 billion in losses last year, and says it is losing $10 million per day.
The Canadian Union of Postal Workers (CUPW), which is in the middle of drawn-out negotiations with Canada Post, has yet to comment on the cuts.
More to come…
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