The chair of Canada PostB次元官网网址檚 board says the organizationB次元官网网址檚 financial situation is unsustainable.
B次元官网网址淭he board and senior management recognize that Canada Post is at a critical juncture,B次元官网网址� said Andr茅 Hudon at its annual general meeting on Wednesday.
B次元官网网址淪ignificant change is urgently needed to preserve Canada PostB次元官网网址檚 delivery network, which is vital because itB次元官网网址檚 the only delivery network built to serve all Canadians.B次元官网网址�
The surge in online shopping during the COVID-19 pandemic reshaped the parcel delivery market, and Canada Post is competing with B次元官网网址渉igh-tech, low-cost operators who are rapidly and relentlessly evolving,B次元官网网址� Hudon said.
He said the organization has already taken some steps to try and address these challenges, including pausing some investments to concentrate on core priorities and reducing costs at all levels.
Hudon said the company has been working hard to deliver new services to help make Canada Post more competitive in parcel delivery as the e-commerce market is projected to double in the next decade.
Letter mail used to be Canada PostB次元官网网址檚 primary source of revenue, said president and CEO Doug Ettinger.
But over almost two decades, the organization has gone from delivering 5.5 billion letters a year to about two billion, he said.
More than a decade ago, the company shifted its focus to address growing demand for parcel delivery, he said.
Ettinger said the Crown corporation has seen its parcel delivery market share cut in half since 2019.
B次元官网网址淲e are doing our very best to compete in this fast-paced parcel delivery market, but weB次元官网网址檙e doing so with an operating and delivery model built for an older era,B次元官网网址� he said.
It doesnB次元官网网址檛 help that Canada Post is the only competitor in the category that doesnB次元官网网址檛 offer weekend delivery, he said.
In order to compete, Ettinger said Canada Post needs more flexibility in its operations and its investments, as well as from a regulatory standpoint.
In August, Canada Post reported a second-quarter profit of $46 million before tax as a one-time sale of subsidiaries helped offset an operational loss of $269 million.
ThatB次元官网网址檚 compared with a loss of $76 million before tax in the first quarter of the year.
In January, Canada Post and Purolator Holdings Inc. announced they were divesting their shares in subsidiaries Sci Group Inc. and Innovapost Inc. The transactions closed earlier this year.
