Hongkong Post ends permanent roles for new staff to cut operating costs, mulls branch closures

Hongkong Post has decided to end the permanent hiring of new staff in order to reduce operating costs, as its chief predicts a continued decrease in mail traffic. Instead of offering permanent contracts, the postal service will give two-year contracts to incoming employees, including mail carriers and postal officers, whose probation periods will end in September.

Postmaster General Leonia Tai explained that the decline in mail volume, driven by fewer people using traditional mail formats and volatile geopolitical tensions, necessitated this change. Approximately 200 staff members are expected to be impacted by the new policy. Tai emphasized the importance of minimizing job loss for the affected employees, who had completed their probation periods.

Hongkong Post, a government department responsible for its own expenses, reported a record-breaking operating loss of HK$821 million last year, despite a 12% drop in mail traffic. The Legislative Council recently allocated HK$4.6 billion to support the postal service's operations over the next three years. Tai also revealed that the organization is reviewing its operations, including the delivery model, and considering closing low-traffic branches or shortening operating hours.

Additionally, Hongkong Post has been developing e-commerce services, though the competitive market may not fully offset its operating costs in the near future.