March 8, 2017 / 4:47 PM / 5 months ago

Postnord to cut up to 4,000 jobs in Denmark

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COPENHAGEN, March 8 (Reuters) - Postal company Postnord plans to cut up to 4,000 jobs in Denmark in the next two to three years to cope with pressure on its business from "digitization" and to restore profitability, it said on Wednesday.

Mail volumes in Denmark have fallen 80 percent since 2000 because of the rapid growth of digital technology in the country which has reduced the number of letters being sent.

"Mail volumes in Sweden are showing a declining trend, but at considerably slower pace than in Denmark," Postnord said.

The company, which reported a 1.5 billion crown net loss for 2016, has already cut 3,000 jobs since 2013.

"Because the pace of digitization rose sharply in 2016, this has not been enough," the company said in press release.

Postnord, owned by the Swedish and the Danish governments, said that in addition to the Danish job cuts it would continue to reduce administration costs, which could also mean 700 full-time jobs outside Denmark would go.

Some of the Danish employees are on public service contracts which entitle them to three years pay if they lose their job.

The company, which has around 32,000 employees in total, including about 10,000 in Denmark, said the planned transformation of the Danish business would cost around 3 billion Swedish crowns ($332.1 million). ($1 = 9.0323 Swedish crowns) (Reporting by Teis Jensen. Editing by Jane Merriman)

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