According to CEO Deepak Chopra, Canada Post is beginning preparations to completely reinvent the company in anticipation of a 50 percent decrease in mail.
In an interview with CBC News Network’s The Lang & O’Leary Exchange, Chopra said that it would be incorrect to believe that mail will disappear entirely since items such as passports, health cards and birth certificates, which have no virtual equivalent, will still need to be sent through the mail.
But the majority of Canada Post’s business will go digital – including most billing, tracking your parcels and redirecting your mail.
“We have to get ahead and build a network that can handle a 50 per cent reduction which is about $1 billion to $1.5 billion drop in our revenues,” Chopra said.
A reduction in service of that size is expected to cost 6,000 to 8,000 people their jobs, as Canada Post also faces a $6.5 billion deficit in its pension plan.
The one silver lining? Chopra says Canada Post already gets 40 percent of its revenue from parcel business and direct marketing, both of which are seeing growth.
“We have to move the conversation to that new brand,” he said, remarking that Canada Post has “not done a good job” of building a future, because it was too busy “fixing the basics.”
Canada Post is hoping to become profitable, or at least no longer dependent on taxpayers, by 2018/2019.
Featured Image: Canada Post via Shutterstock