Canada Post at ‘critical juncture’ due to unsustainable finances: board chair

The chair of Canada Post’s board warned Wednesday the organization’s financial situation is “unsustainable” as it struggles to compete against e-commerce platforms and faces dropping demand.

“The board and senior management recognize that Canada Post is at a critical juncture,” said André Hudon at the company’s annual general meeting.

“Significant change is urgently needed to preserve Canada Post’s delivery network, which is vital because it’s the only delivery network built to serve all Canadians.”

The grim warnings from Hudon and other top executives come after years of trouble at the national mail carrier, which experts say could “go the route of Blockbuster” if it doesn’t change course soon.

Hudon said the surge in online shopping during the COVID-19 pandemic reshaped the parcel delivery market, and Canada Post is competing with “high-tech, low-cost operators who are rapidly and relentlessly evolving.”

The impact on the company’s finances have been “enormous,” he added.

“With every quarterly report, it becomes clearer that our financial situation is unsustainable,” Hudon said.

He said the organization has taken some steps to try and address these challenges, including pausing some investments to concentrate on core priorities and reducing costs at all levels.

The Crown corporation’s latest annual report used similar language, noting it has recorded “significant” annual losses since 2018. Last year’s loss was the second-largest on record, at $748 million.

Hudon said the company has been working hard to deliver new services to help make Canada Post more competitive in parcel delivery as the e-commerce market is projected to double in the next decade.

The company has also struggled with a significant reduction of letter mail