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

Hongkong Post has decided to stop granting permanent civil service contracts to new employees in an effort to reduce costs, amid a continuing decline in mail traffic. The postal service has instead opted to provide two-year contracts to new hires, including mail carriers and postal officers. Hongkong Post Postmaster General Leonia Tai revealed this during a radio program, explaining that the drop in mail volume is expected to persist and intensify.

The decision comes as Hongkong Post faces a voluntary reduction in its workforce due to the loss of permanent positions. Tai acknowledged that terminating employment immediately after probation would be a significant setback for affected staff and aimed to alleviate this impact by offering a shorter contract duration. The move is part of Hongkong Post's broader strategy to "optimize the network," including the potential closure of low-traffic branches or reduction of operating hours.

The Legislative Council recently allocated HK$4.6 billion in support for Hongkong Post's operations over the next three years. However, the postal service is also developing e-commerce services to generate additional revenue, which may not fully offset its operating costs in the near future. As of May 2025, Hongkong Post employed approximately 2,200 mail carriers and 1,300 postal officers.