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Hongkong Post moves to cut staff costs after funding bailout
The government sought a HK$4.6 billion (US$510 million) Legislative Council bailout to keep the postal operator running for the next three years, prompting structural changes to address profitability issues.
Hongkong Post is taking steps to reduce a structural cost pressure, focusing on staff expenses, according to commentary in South China Morning Post Economy that comes two years after Hong Kong’s Audit Commission criticized the operator for weak profitability and other failings.
The outlet argues the trigger was not solely the audit findings, but the government’s need to seek Legislative Council approval for a HK$4.6 billion (US$510 million) bailout to keep Hongkong Post operating for the next three years, amid a broader global decline in letter volumes.
The piece links the postal service’s challenges to long-running trends in shrinking snail mail usage worldwide, and points to how other postal systems have reshaped operations by cutting jobs and shifting priorities.
It also highlights Hong Kong’s push to drive residents toward digital services via the iAM Smart one-stop platform, noting iAM Smart had already accumulated more than 4 million users by the end of 2025, and warning that fewer letters would likely continue as the digitalisation plan advances.