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.
Conventional postal services, i.e. until recently, were not available. She said that the largest part of the company's revenue was generated by those provided by postal carriers or in post offices. The revenue fell by more than a third in the second half of 2021 and continues to shrink this year. The flow of these parcels fell by 64 percent in the second half due to the scrapping of a VAT relief on parcels from non-EU, according to the CEO.
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.