Door-to-door mail delivery in Canada is coming to an end as Canada Post moves to cut costs while expanding its community mailbox system.
According to the Crown corporation, most Canadians already receive their mail from community mailboxes, with the remaining one third still receiving door-to-door service.
Home delivery will be phased out over a five-year period. Canada Post expects to reduce its workforce by 6,000 to 8,000 employees, mainly through attrition, as workers are expected to retire or leave the company within the next five years. Canada Post’s employee pension plan will be restructured as well.
In a news release, the company said a leaner workforce will create a more flexible and more competitive corporation. Canada Post has faced declining revenues and increased competition from courier services in recent years. In April, a Conference Board of Canada study projected a financial loss of close to $1 billion by 2020 unless the corporation made key fundamental changes to its business.
On Wednesday, Canada Post also announced changes to letter mail which will take effect on March 31, 2014. Canada Post is introducing a new tiered pricing structure for letter mail sent within Canada. Customers who buy stamps in booklets or coils, will pay 85 cents per stamp. Consumers who purchase stamps one at a time will pay $1 per stamp.
The company said it is streamlining its operations and plans to strengthen its retail network by opening more franchise postal outlets in stores across Canada.
Canada Post hopes the changes can return the public company to financial sustainability by 2019.
The company said its sustainability plan, when fully implemented, will generate cost savings of up to $900 annually.
The community mailbox initiative alone is expected to save up to $500 million per year.