AN POST plans to reduce its headcount by an additional 600 employees as part of a major restructuring of the company aimed at countering the effects of the recession.
The State company had already announced plans to reduce its staff by 1,375 by 2012 but this target was increased yesterday to 1,975 by 2015.
An Post said it hopes to achieve the cuts by voluntary redundancies and natural wastage. About 330 staff have already left the business as part of the plan.
Results published yesterday show that An Post’s operating profit rose marginally to €5.8 million last year while its turnover was flat at €805 million.
But exceptional costs and other financial charges, which amounted to €30.6 million, resulted in the company reporting a trading loss of €24.7 million.
An Post recorded exceptional costs of €20 million relating to redundancies, a €6.6 million charge from the closure of its Postbank joint venture and a finance expense of €6.9 million.
Traditional mail volumes fell by 7 per cent in the year, not helped by weather disruptions.
An Post is also facing greater competition, as the Irish market is now fully liberalised.
An Post’s subsidiaries increased their combined revenues to €67 million from €46 million in 2010.
Its pension deficit reduced to €368 million last year from €403 million in 2009 but it still falls short of meeting the necessary minimum funding standard.
The company said it was working with trustees and employees on an “agreed plan to address the situation”.
Commenting on the results, An Post chairman John Fitzgerald said: “Significant cost savings were achieved in relation to pay and non-pay costs. Capital expenditure of €47 million was invested in areas critical to the company’s future success such as parcel and packet services and new retail products. An Post will continue to invest in the foundations of future business whilst adapting to the commercial realities, which continue to unfold for Ireland.”
An Post chief executive Donal Connell earned €500,000 last year, the same level as in 2009.
He was paid a basic salary of €386,000, a director’s fee of €16,000, a pension payment of €77,000 and other benefits of €21,000.
Mr Connell waived his entitlement to a performance bonus of up to 25 per cent of his salary in 2010 and for the current year.
