The Czech Republic is undergoing a major overhaul of its postal service, Czech Post. The aim of this transformation is to modernize the services offered, reduce costs, and restructure the state enterprise. The interior minister, Vít Rakušan, believes that the company cannot survive without making changes. The transformation is expected to take two years and will require the approval of the government.

One of the main objectives of the transformation is to reduce costs and save on some services, as the company has been operating in the red in recent years. To this end, the minister suggests that the company could be split into two branches, with non-profitable services such as letter mail remaining under state control, while services that can compete in the market, such as parcel or logistics services, could become a joint-stock company in which the state holds a partial or full stake.

The minister also plans to examine the functioning of the branch network, especially in large cities, but assures that there is no risk of closing branches in the regions. There will be extensive discussions with other authorities, local governments, and trade unions before the final form of the changes is approved.

Last year, Czech Post halved its losses to CZK 681 million, and its operating income rose by CZK 400 million to CZK 19.55 billion. The company operates about 3,200 branches in the country and provides essential postal services nationwide under a license from the Czech Telecommunications Office. The state’s transformation of Czech Post will bring the company up to speed with current trends and ensure its sustainability in the future.

Article by Prague Forum