TNT has unveiled plans to cut between 1,000 and 1,100 jobs over the next three years at sixDutch mail sorting centres. The reorganisation move is part of its Cost Flexibility Master Plan to
reduce costs and improve efficiency in postal operations in readiness for full marketliberalisation in the Netherlands.The jobs will be shed at the six letter sorting centres in Amsterdam, Rotterdam, The Hague, DenBosch, Zwolle and Nieuwegein between 2006 and 2008. TNT said it has prepared a range of socialmeasures to support its employees during this period of reorganisation, including flexible jobdeployment and assistance in finding new work. TNT said it expected there would only be 250 actualredundancies as a result of this approach and due to retirements.
The reorganisation will facilitate more efficient and flexible operations in response to theongoing reduction of the number of postal items handled. This reduction stems from the substitutionof conventional post by e-mail and the Internet as well as from competition in the Dutch postalmarket.
The Cost Flexibility Master Plan was developed in 2001 with the aim of structurally reducingcosts by €370 million in the period up to year-end 2012. This reduction is necessary to be able toabsorb the expected reduction of volume caused by substitution of postal items by e-mail andincreasing competition. The Master Plans include reorganisations at Operations, Marketing &Sales and Overhead. Annualised savings achieved to-date are € 234 million and a total of 9,000 jobshave been eliminated at TPG Post in the period from 2000 to 2006. The reorganisation at the sortingcentres is part of the plans to accomplish the remaining amount of the targeted savings.
