Postal jobs at Dubbo safe as hundreds facing the axe

Almost all of the jobs that will be cut are in administration and support roles and most will be cut from the Melbourne headquarters and offices in Sydney.

Details of the sackings were leaked on Sunday but yesterday they were confirmed by Australia Post CEO Ahmed Fahour, who said the jobs had to go as the company moved to ensure its future.

He said the losses were 'deeply regrettable' but a harsh reality as more people turned to digital mail and other alternatives.

There has been an almost 30 per cent drop in the number of letters being sent in the past five years and those figures are expected to continue to drop by between 8 and 12 per cent every year.

"Losses in letters are now, for the first time, overwhelming the profits we make in parcels. Furthermore, without postal services reform, the losses in our letters business will reach a billion dollars per annum within a few years," Mr Fahour said.

"As the community becomes less reliant on our letters service, we need to fundamentally reform it.

"We need to continue to find ways to reduce our cost overheads and operate more efficiently, while redirecting our resources into those services that the Australian community want and value."

Among the changes Mr Fahour plans to implement are an expanded number of services and later this year Australia Post stores will open on Saturdays in a bid to meet the needs of more clients.

A restructure will also see parcel services operate under the Startrack banner, separate from the existing post and retail sector.

Mr Fahour said every effort would be made to ensure staff who are facing redundancy will be properly looked after.

"Supporting our people through this change is our top priority," he said.

"I want to reassure all of our employees that we have a strong history of working closely with our people as we implement major change.

"We have robust, well-established processes to manage these situations respectfully."