Magyar Posta seeks solutions for smaller post offices

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Hungarian state-owned postal company Magyar Posta is planning to modernize high-traffic post offices and find “cost-effective solutions” for the operation of smaller outlets, chairman-CEO Zsolt Szarka told journalists on Friday, according to Hungarian news agency MTI.

The infrastructure at many of Magyar Postaʼs low-traffic post offices costs a great deal to run, and renovating the several hundred offices would amount to HUF 4-5 billion, Szarka said. 

Such post offices stand empty for about five hours a day, and at more than 400 of these, the number of letters mailed averages just one a week, he added.

Magyar Postaʼs capital expenditures came to HUF 25.2 bln in 2010-2012 and to HUF 33.6 bln in 2013-2015; still, 600 post offices operate entirely offline, he said.

The number of staff that will be affected by reorganization will be under 1,000 of the 30,000 employed by Magyar Posta, said state secretary Zsuzsa Németh. The staff at some 300 post offices are already outsourced, she added.

Magyar Posta has about 2,200 post offices across the country.

Németh said postal services could be made available at certain financial institutions by the fourth quarter of this year.

Magyar Posta earlier formed a partnership with the integrator of Hungaryʼs savings cooperatives with the aim of boosting lending activity and developing financial infrastructure and know-how in small towns and rural areas.

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