Australia Post will go the way of Kodak and the local video store without a fundamental transformation of the business, according to chief executive Ahmed Fahour, who confirmed the company would axe 900 jobs this year.
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Most of the job losses will come from Australia Post's head office in Melbourne, with managerial, administrative and support roles most affected.
Australia Post staff and the unions representing postal workers were briefed on the changes on Tuesday.
Mr Fahour said a 30 per cent decline in letter volumes over the past five years means radical reform of the 205-year old company is needed to keep it viable.
"People really don't understand the magnitude of the losses - our letter losses will blow out to a billion dollars without reform."
- Ahmed Fahour
He said history was littered with examples of companies who had responded too slowly to technological transformation and changing consumer demands.
"People really don't understand the magnitude of the losses - our letter losses will blow out to a billion dollars without reform," Mr Fahour told Fairfax Media.
"We are shifting resources, capital and money from the declining area of our business [letters] to the growing part - our trusted services in stores and the delivering of packages.
"We are prepared to take the pain in our headquarters to fund what the community wants."
The decline in letter volumes is expected to accelerate to between eight and 12 per cent in coming years, wiping out the profits from the booming parcels division.
While he said every job loss is regrettable, Mr Fahour said no frontline services would be affected by the cuts and that no post offices would close.
More to come
