Government says that it will fight to ensure the survival of the SA Post Office but the plan could see up to 7000 jobs cut, of the roughly 11 000 Post Office workers.
The Post Office has been making losses for years, with about R2-billion losses registered in the past three years.
The job cuts are expected to save the embattled state owned entity about R1,5 billion.
SA Post Office looking at turnaround strategies:
The Post Office was placed under provisional liquidation in February, prompting court action by the Communication and Digital Technology Department, to put the entity on business rescue instead.
Minister of Communication and Digital Technology, Mondli Gungubele explains:
“The court gave us up until the first of June, to actually present what is the best option- because it would be making the final order. So, we use that period to explore options. Immediately at our disposal was a post office whose services are still highly needed. Just recently, the March studies would have shown that the post office services at rural and far flung areas, are the most used.”
Post Office was placed under provisional liquidation in April: Mondli Gungubele:
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