Install

Get the latest updates as we post them — right on your browser

Today's paper. Last Updated: 02/10/2012

Russian Post Announces Plan to Lay Off 33,000

Russian Post on Monday announced plans to lay off 8 percent of its work force next year, becoming the latest in a series of state-owned firms to implement large job cuts.

“Russian Post will continue to optimize its structure and the size of its managing staff in 2010,” Russian Post said in a statement. “The measures planned will result in at least an 8 percent redundancy of staff.”

The state-owned company currently employs 415,000 people, of which up to 33,000 may be laid off. The cuts are aimed at making the company more transparent and efficient, the statement said.

The announcement comes after two other major state-owned employers announced massive job cuts. Sberbank, the country’s largest bank, said earlier this month that it would fire 10 percent of its staff, or 27,000 people, in 2009 and that 20 percent to 25 percent of employees would lose their jobs in the next five years. Russian Railways said in April that it could lay off as many as 53,700 of its 1.2 million workers.

Alexander Kiselyov, former director of Svyazinvest, a state-owned telecommunications giant, took the reins of Russian Post in February and vowed major changes to modernize the company and make it less state-dependent.

Its financial position has materially improved. Earlier this month, the company posted earnings of 69.2 million rubles ($2.4 million) for January through September, up 11 percent compared with the same period last year, Prime-Tass reported. In the first quarter, the state firm saw pretax profits for the first time in three years, and cut its net losses nearly 90 percent to 49.2 million rubles.

Kiselyov, facing a drop in the popularity of traditional mailing services, has focused on developing alternative services, such as EMS Express Delivery.

“So far we’ve seen a major rebranding campaign. … You can even see those vans with EMS Express Delivery labels on their sides across the city,” said Ivan Shatskikh, CEO of UPS CIS. “And it looks like the company is ready to invest in buying new cars, but wants to save some cash by cutting jobs.”

But DHL, TNT, UPS and FedEx dominate the international express delivery market and Russian Post has several Russian competitors on the domestic market so it may be difficult for EMS to make a splash, Shatskikh said.

Russian Post has fallen victim to new technology as people are using traditional mail less often than before, said Luc Jones, a partner at Antal. The company chose a very hard time to lay off people, he said.

“It is always politically extremely hard to fire so many people, so what the Russian government should have done, is to have reformed Russian Post and other similar companies several years ago, when the employees had better chances of finding new jobs,” Jones said.

Russian Post could not be reached for comment.


Also in Business

Putin Has Plethora of Business Ideas

President of state-controlled bank VTB Andrei Kostin on Thursday called for business to support the government ahead of next month's presidential election, hinting that entrepreneurs' participation in opposition protests could be hazardous to their health.

VTB Buyback Details Finalized

State-controlled bank VTB will buy back its stock from retail investors at the 2007 issue price of 13.6 kopeks per share over the next two months in a move aimed at preserving the reputation of the country's second-largest lender.

Agricultural Levies to Be Harmonized

After joining the World Trade Organization, Russia will have to start taxing some agricultural products that are now exempt.

Aeroflot Countering Bribery Allegations

Aeroflot said it will file a countersuit for slander and defamation against a U.S. tour company that has accused the airline of bribery and extortion.

Ex-Cop Runs Bogus Drug Plant at Home

Investigators have uncovered a counterfeit drug factory, along with 20 million rubles ($670,000) worth of bogus pills, at the dacha of a former first deputy head of the Moscow metro police.

Waiting for WTO, Food Chains Look To Regions

Average food import tariffs in Russia will drop from the current 10 percent to 7.8 percent as soon as Russia's entry into the World Trade Organization is complete, but challenges remain in taking advantage of the new status, industry experts agreed during the Food Business Summit in Moscow on Thursday.




Discussion
The Moscow Times welcomes your comments and invites you to discuss topics with other readers. Your comment will be posted automatically to enable a live discussion. If you aren't familiar with our comments policy, you can read it here.

If you're a registered user, you can start typing your comment below. If not, take a moment to sign up. and then return to the article.

If your comment doesn't appear, contact us by using our web form.

Comments

Comments via Facebook

print


Comments

This article has no comments.

Be the first to leave a comment





Most Read