NZ Post cuts up to 100 jobs

JASON KRUPP
Last updated 11:14 20/06/2013

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Wellington's already battered employment landscape is set to take another blow after NZ Post announced it will axe between 80 and 100 managerial positions by July 1.

The cuts are part of a bid to flatten the state-owned postal services operator's structure, and while the downsizing will affect NZ Post's main corporate centres, the blow will land hardest in the capital.

The cuts will not affect subsidiary Kiwibank.

NZ Post's external relations manager John Tulloch said cost cutting played a part in the decision to restructure, but the primary motivation had been to narrow the distance between senior management and customers.

"We had some traditional management structures based on a business model of the past," he said. "So really a lot of this is about sitting down and reorganising and realign, and making sure we have the right management structures."

An example of this was moving sales and marketing responsibility to the regional offices, away from the current centralised model.

Tulloch stressed the restructure affected only about 6 per cent of the postal operator's 1300 corporate staff, who manage a business with an annual turnover of $1.2 billion.

The move was not related to its post-delivery obligations, which the SOE has been trying to reduce from the legislatively mandated six days a week to three in response to declining mail volumes.

"This is really is about getting the corporate arm of Post in the right shape and agile enough to implement our strategy," Tulloch said.

Last month NZ Post warned it may have to tap the Government for a subsidy if it cannot get approval to slash its mail-delivery requirements.

Reports have speculated that if the operation requirements are relaxed it could lead to the loss of several hundred jobs nationwide.

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- BusinessDay.co.nz

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