Czech Post to lay off 1,600 employees

Czech Post will be laying off approximately 1,600 employees as it reduces the number of its branches. Additionally, around 2,269 of the planned closed positions are currently vacant. The Czech Post union representatives will oversee the employee terminations and adherence to the established dismissal criteria. The spokesperson for the post office, Matyáš Vitík, made this announcement after a meeting on Wednesday between the post’s management and union representatives.

At the same time, the management will create a platform with operational employees to evaluate the implementation of new work procedures at the Czech Post. The spokesperson added that the company’s leadership would continue to meet with the unions. Currently, Czech Post employs around 25,000 people.

Czech Post plans to close 300 out of its 3,200 branches. The branches are to be closed in larger municipalities with more than 2,500 inhabitants, with multiple branches. The distance to the nearest post office will increase from two to three kilometers. The company will offer terminated employees another position or retraining.

The government must approve the reduction of branches through a regulation. The post office will then publish a list of closed branches and the number of terminated employees. The branches are set to close by July 1st of this year.

The branch closures are an effort by Czech Post to reduce losses. Last year, the post office reported a loss of 1.5 billion Czech korunas. Without implementing cost-saving measures, it would have gone bankrupt this year. The closure of post offices will also result in the elimination of up to 2,269 jobs. However, some positions are already vacant so fewer postmen will lose their jobs. The company will also offer retraining or other job opportunities.

Closing branches is one of the first steps in the planned transformation of the Czech Post. Over the next two years, the post will be split into a state-owned enterprise that operates branches providing essential postal and financial services and a commercial joint-stock company offering parcel and logistics services. The process will be completed by 2025, costing over 8 billion Czech korunas.