The Czech Post will be transformed by the state this year, and the company will be divided

The state will launch a large-scale transformation of the Czech Post this year. It will aim to reduce costs and modernize services. The possible division of the state enterprise will also be addressed.

It also wants to examine the functioning of the branch network, especially in large cities. Interior Minister Vít Rakušan (STAN) said at a press conference on Wednesday that the company would not survive without changes. The government will approve the transformation plan, and the changes should take about two years.

According to Rakušan, the plan should adapt the company to new trends because, at present, it offers only standard services that are often out of date. The aim will be to reduce costs and save on some services, as without this, the minister said, the company would only deepen its losses.

The minister said that the company could, for example, be split into two branches. Services that are not profitable, such as letter mail, would remain under the state. According to Rakušan, the second branch could include services that could be competitive in the market. He mentioned, for example, parcel or logistics services.

According to Rakušan, this part could be a joint-stock company in which the state would have a full or at least partial stake. He also wants to examine the functioning of the branch network, especially in large cities, but the minister said there is no risk of closing branches in the regions.

The ministry will still hold extensive discussions with other authorities, local governments, and trade unions on the exact form of the transformation. The government will approve the final form of the changes.

In recent years, the Czech Post has been operating in the red. Last year, it halved its loss to CZK 681 million. In the previous year, it posted a loss of CZK 1.37 billion. Operating income rose by CZK 400 million to CZK 19.55 billion.

The post office operates about 3,200 branches in the country and provides essential postal services nationwide under a license from the Czech Telecommunications Office.