Sapo to cut working hours, retrench staff

The South African Post Office plans to reduce its working hours and retrench employees in a bid to cut its wage bill, Chief Executive Officer Nomkhita Mona said.

The state-owned company has been in a “downward spiral” since 2004, when it last posted a profit, and staff-related costs account for 68% of its total expenditure, Mona said in an interview with Johannesburg-based radio station SAfm on Friday.

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The Post Office, mindful of South Africa’s sluggish economy and high unemployment, will prioritise reducing its working hours, before implementing a longer-term plan to cut staff, Mona said.