The company’s turnover has also fallen, reports broadcaster DR.
The company, which has 60 percent Swedish and 40 percent Danish ownership, lost 748 million Swedish kronor (78 million euros) during the first hald of 2017, more than double the amount 304 million Swedish kronor (32 million euros) loss from the same period last year.
“The result is affected by strong digitalisation in Denmark, which has not been balanced by increased logistical turnover and turnover adaptations in delivery operations.
“We continue to work to implement an economically sustainable production model, which during the next few years will give Postnord Denmark the capability of being profitable,” the company wrote in relation to its Danish operations as it reported results.
Turnover for the company has dropped by ten percent to 4.3 million Swedish kronor (450,000 euros) during the first half of 2017, according to DR’s report.
Postnord cites digitalisation, with both private customers and businesses turning to email and Denmark’s secure digital mail system Eboks, as the basis for the decrease in turnover.
“In Communication Services [post, ed.] comparable turnover fell by 27 percent, since the amount letters delivered by Postnord Denmark fell by 23 percent due to increased digitalisation,” the company wrote.
In addition to the decline in mail, Postnord still employs several thousand numbers of civil servants who are very difficult to lay off, reports DR.
The company was merged with its predecessor, the originally state-owned Post Danmark, in 2009, and in 2016 much of Denmark’s postal services switched from the traditional red and mustard colours to Postnord’s light blue.
The company’s problems are likely to lead to political intervention, according to the report.
Over 1,600 employees in Denmark will be made redundant by the company by the end of the autumn, according to DR.
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