Hongkong Post ends permanent roles for new staff to cut operating costs, mulls branch closures

Hongkong Post is ending permanent employment for new hires as part of a strategy to cut escalating operating costs, citing a continuous decline in mail volume. The postal service is also exploring options like closing underutilized branches.

Postmaster General Leonia Tai announced that new staff, including mail carriers and postal officers, will receive two-year contracts instead of the traditional permanent civil service appointments. This change affects those whose probation periods conclude in or after September. Tai explained that the persistent drop in traditional mail traffic, exacerbated by volatile geopolitical factors, makes offering permanent roles untenable.

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We are facing a continued decline in mail traffic, with fewer people sending mail in traditional formats. We expect the drop to continue and even widen in the future.

"We are facing a continued decline in mail traffic, with fewer people sending mail in traditional formats. We expect the drop to continue and even widen in the future," Tai stated. She added that terminating employment immediately after probation would be a significant blow, hence the decision to offer fixed-term contracts as a more responsible approach.

Last year, Hongkong Post reported a record operating loss of HK$821 million, with mail traffic falling 12 percent. The service has also been impacted by a suspension of package postings to the US amid trade disputes. While the government allocated HK$4.6 billion to support operations over the next three years, the postal service is actively reviewing its network, including delivery models and operating hours, to optimize efficiency.

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Against this background, we are really unable to offer permanent contracts to staff who are going to complete their probations. But we also considered that terminating their employment right after their probation period would be a huge blow to them. We wanted to minimise the impact as a responsible employer and didn’t want them to suddenly lose their jobs.