Canada Post suffered losses and laid off 50 management personnel
Canada Post is facing a 'serious financial crisis' and has laid off ten management personnel.
Canada Post told Global News in an email on Thursday: "As Canada Post continues to address severe financial and operational challenges, the company conducted a round of layoffs earlier this week, involving nearly 50 management employees, as part of a company wide restructuring
The company stated that about half of the affected employees are in Ottawa, while the rest are in Toronto and other areas.
Canada Post stated, "These decisions have never been easy, but they reflect the severe financial situation that the company is currently facing
The company added that it had cut 20% of its senior management positions last month and completed a 'restructuring of the executive team'.
Image source: CTV
Canada Post emphasizes that "layoffs will not affect postal services provided to Canadians
Last month, this cash strapped company received a whopping CAD 1.034 billion in funding from the federal government. The company stated in its 2023 annual report that without this short-term financing, it would have exhausted all its cash reserves by the second quarter of 2025.
The layoffs and federal government funding aid come after Canada Post went through a month long strike and another year of losses.
Canada Post is on the decline, and the endpoint is not far away
In the third quarter of 2024, Canada Post reported a pre tax loss of CAD 315 million, mainly due to a decrease in parcel business revenue and delivery volume. Compared to the same period last year, the revenue from parcel services decreased by 5.8%, and the delivery volume decreased by 6 million items (a decrease of 9.6%).
In addition, after a month long strike by over 55000 workers in November last year, Canada Post is still working hard to restore mail delivery services.
Although the Canada Industrial Relations Board ordered an end to the shutdown on December 17 last year and Canada Post has stated that operations have returned to normal, it appears that efforts are still being made to address the backlog of mail.
CTV News continues to receive complaints from Canadians regarding postal service issues. Therefore, CTV has decided to conduct a test to see how long it takes to send emails to various parts of the country.
Image source: CTV
On the morning of January 9th, Farah Chandani, the producer of the Consumer Alert program, sent six letters to CTV colleagues in Vancouver, Edmonton, Ottawa, Montreal, Halifax, as well as CTV journalist Pat Foran himself in Toronto. After receiving the letter, each site should immediately notify CTV.
The test results are as follows:
CTV Halifax and CTV Ottawa received the letters the earliest, taking 7 days.
CTV Edmonton delivered the letter 9 days after receiving it.
CTV Toronto office takes 12 days.
The letter from CTV Vancouver took a whopping 19 days to arrive.
The letter from CTV Montreal was still not delivered at the time of article publication.
Image source: CTV
When asked by CTV News about Canada Post, a spokesperson said, "We appreciate the patience of Canadians over the past few weeks. We have been working hard to process a large volume of holiday mail while safely restoring normal operations. Although we have stabilized operations and completed package delivery within the network, we are still processing a large volume of mail
Canada Post added:
The on-time delivery service for domestic packages has resumed on January 6, 2025, and postal processing and delivery have returned to normal, including in remote areas.
But for transaction emails such as letters, bills, and statements, customers still need to anticipate a few days later than the standard delivery time.
For international mail, Canada Post stated that the backlog is being quickly cleared, but customers should still anticipate a delay of several days.
Concordia University economics professor Moshe Lander told CTV News that he was not surprised by the delay from Canada Post.
He said, "Faced with a large backlog of emails, it is expected to take one or even two months to truly return to normal
He also pointed out that even though fewer Canadians are using postal services, Canada Post still struggles to deliver mail on time.
Canada Post is heading towards decline, which is inevitable. Mail volume is decreasing, and even with population growth, it cannot return to past levels. The endpoint is not far away
Canada Post stated that it is still working to restore normal operations, but if you are waiting for mail, it is still uncertain when it will be delivered.
Source link:
https://www.msn.com/en-ca/money/topstories/canada-post-lays-off-managers-amid-critical-financial-situation/ar-AA1yx1oC?ocid=finance -verthp-feeds