An Post is exploring fundamental changes to postal services, including potentially ending next-day delivery and reducing distribution frequency, as declining mail usage forces a rethink of operations.
Ministers were briefed on the postal service’s annual report, which showed core mail volumes fell 7.6% in 2024 despite record revenues of €1 billion and profits of €5.6 million, up from a €20 million loss in 2023.
Communications Minister Patrick O’Donovan presented options including fewer weekly deliveries and reduced distribution centres to Cabinet, with senior ministers acknowledging the need to move away from postal networks designed “30, 40, 50 years ago.”
One minister noted that “people aren’t using it” as they once did, pointing to the loss of over 100 post boxes in 2024 alone. Personnel costs have risen 10% year-on-year, higher than any other state agency, despite staff numbers remaining relatively stable at just over 10,200.
An Post’s current standard postage guarantees next-day delivery, but the company reports that customers now prioritize “reliability over speed.” This mirrors trends in other EU countries that have moved away from next-day delivery promises.
The report suggests replacing smaller letter-focused operations with larger facilities designed for both eCommerce parcels and traditional mail. However, any changes await completion of a wider service review.
An Post maintains it remains financially stable with €38 million in spare cash and no government subsidies, though a May report warned the post office network needs €15 million annually over five years to remain viable.