Post Danmark laying off hundreds of employees

Administration employees facing an uncertain future as the company makes massive savings

PostNord, the Scandinavian company formed by the merger of postal company Post Danmark and Swedish counterpart Posten AB, has announced that hundreds of employees will be laid off this year.

"PostNord is undergoing an extensive savings-program in a bid to save about 500 million Swedish kroner this year," explains the company in a report.

"This means the company will lay off between 700 and 800 administration employees, mostly in Denmark."

The process will start during the last quarter of 2014.

Decrease in mail volume
The company announced the layoffs after it recorded a 4 percent decrease in the total volume of sent mail in comparison to the third quarter of 2013. 

Not even the extraordinary shipments of health cards in Denmark and mail deliveries related to the local and regional elections in Sweden helped the company.

Company's CEO stepping down
According to the report, Knud Pedersen, the current deputy CEO and executive vice president at PostNord, has decided to resign at the end of the year.

Pedersen will also step down from his position as CEO at Post Danmark. 

PostNord was established in 2009 through the merger of Post Danmark and Swedish postal company Posten AB.  Forty percent of the company is owned by the Danish state while 60 percent belongs to the Swedish state.





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