Denmark's state-run postal service, PostNord, announced it will cease all letter deliveries by the end of 2025. The decision comes as the company grapples with a dramatic decline in letter volumes, which have plummeted by 90% since the start of the century. In response, PostNord plans to pivot its focus to parcel deliveries, reflecting a significant shift in consumer habits and technological advancements.
Since the early 2000s, PostNord has witnessed a steep drop in letter numbers, falling from 1.4 billion to a mere 110 million last year. This decline has been accelerated by the increasing digitization of communications, with 95% of Danes now using the Digital Post service. However, approximately 271,000 individuals still rely on traditional mail, underscoring a transition period where not all citizens are equally connected to digital platforms.
Chief Executive Kim Pedersen emphasized that the digital shift among Danes has accelerated recently, with letter volumes alone decreasing by 30% in the past year. Consequently, PostNord will lay off around 1,500 employees from its total workforce of 4,600. This move highlights the broader challenges faced by postal services across Europe as they adapt to decreasing demand for physical mail.
In a bid to accommodate customers during this transition, PostNord will offer refunds for postage stamps purchased this year or in 2024 for a limited period in 2026. This step aims to ease the impact on those still utilizing traditional postal services.
PostNord operates not only in Denmark but also in Sweden, with ownership shared between the two countries—40% Danish and 60% Swedish. The company's decision aligns with broader trends seen elsewhere in Europe. For instance, Germany's Deutsche Post announced it would cut 8,000 jobs in a "socially responsible manner," though staff representatives expressed concerns about further reductions.
Denmark's postal service has been a universal entity for over 400 years until the end of 2023. The shift from letter deliveries reflects an evolving landscape where digital communication methods are increasingly preferred by both public services and individuals. Public services now commonly utilize platforms such as the Digital Post app to send communications, offering more efficient and eco-friendly alternatives.