Lietuvos Pastas to cut 3,700 workers

As customers are increasingly choosing alternative delivery methods and delivery methods at post offices are decreasing, we have decided to reduce the number of employees, said Asta Sungailiene, CEO of Lietuvos Pastas.

The company plans to lay off around 600 of its 3,700 employees, with around 800,000 euros to be spent on their severance payments.

Sungailiene said last year's loss was due to a change in the revenue structure.

Until recently, conventional postal services, i.e. She said that those provided by postal carriers or in post offices generated the largest part of the company's revenue. Revenue shrank by more than a third in the second half of 2021 and continues to shrink this year. The decline was due to the scrapping of a VAT relief on parcels from non-EU, which led to the flow of these parcels falling by 64 percent in the second half.

Non-conventional postal services increased in year-on-year terms, with deliveries to parcel lockers up 67 percent and international mail brokerage services up 126 percent.

Lietuvos Pastas posted a net loss of 6.4 million euros last year, compared to a profit of 1.6 million euros in 2020, as revenue fell by 0.8 percent to over 111 million euros.