SA Post Office proposes to cut over 5000 jobs

MAY 6, 2015

The South African Post Office (SAPO) on Tuesday told the Portfolio Committee of Telecommunications and Postal Services that it is proposing to cut 5065 jobs in its plan for a turnaround.

In a statement, SAPO Administrator Dr Simo Lushaba said: “We had to dig deep into the business for the plans we have devised to address the SAPO’s business and other operating challenges in totality.

“Some of the challenges we uncovered relate to a business supported by an inflexible operating model and sky top fixed costs. Leadership constraints and the entity’s inadequate execution capability reflect the SAPO’s seemingly inability to match its obviously declining mail revenues with revenue growth in its other business segments, such as its retail arm.”

Lushaba says the SAPO Corporate Strategic Plan 2015/2016 to 2017/2018 was aimed at reshaping it into a customer-centric  company that was competitive and engaged in commercially viable business activities which fostered sustainable growth.

“It is a strategic intent of the plan to position the SA Post Office as a key service provider of government services to citizens of South Africa, and grow government business up from the current 33% of total revenue to around 50 to 55%,” he said.

The entity had plans to mitigate the loss of jobs by creating entrepreneurial opportunities in retail agencies, the delivery of goods, and the provision of services.

The job losses would also be mitigated by creating new opportunities in the inspection and enforcement of regulations, mailroom management and coordination.

“In our view, this Corporate Strategic Plan ushers in a new era for the SAPO; increased competitiveness which stems from agile and responsive business keenly aware of the ever-changing customer needs,” Lushaba says.