Swiss Post has recently announced a significant decision to terminate its same-day delivery subsidiary, notime, by September, as low demand made the service financially unviable. Launched in 2018, notime aimed to provide urgent parcel delivery across major Swiss urban regions. However, despite efforts to adjust pricing and streamline cost structures, the venture could not overcome the high fixed costs associated with its operations. The service struggled to find robust customer traction, resulting in Swiss Post’s leadership, under Johannes Cramer, acknowledging that demand for same-day services has not seen an anticipated upward trend. The closure will likely lead to job losses, with around 143 full-time equivalent positions affected, mainly in the German-speaking and Western parts of Switzerland. In addressing this impact, Swiss Post is consulting with stakeholders to explore options for minimizing job losses and is actively considering the reallocation of the affected employees within its broader organizational framework.
New Business Collaborations
In tandem with notime’s shutdown, Swiss Post is forging new paths by entering into a notable collaboration with Cartor Security Printers. The UK-based firm has secured a five-year contract to produce postage stamps for Swiss Post, promising potential revenues between $3 million and $4 million. This partnership reflects a strategic shift in business operations, emphasizing cost-effective and sustainable solutions. By outsourcing stamp production to a specialized provider, Swiss Post can leverage Cartor Security Printers’ expertise and economies of scale, ensuring enhanced quality and potentially greater profitability. While the postal service navigates challenges related to the closure of notime, engaging in new collaborations may bolster its financial standing and mitigate some adverse effects on its workforce. The strategic move underscores a pragmatic approach to align with market trends and priorities favoring financial stability and operational efficiency over potentially unrewarding ventures.
Implications for Swiss Post’s Future
Swiss Post has announced its decision to close notime, its same-day delivery service, by September due to low demand, rendering it financially impractical. Notime launched in 2018, focusing on expedited parcel delivery in key urban areas of Switzerland. Despite attempts to revise pricing and improve cost-efficiency, the venture failed to offset the significant fixed costs involved. Customer interest remained insufficient, prompting Johannes Cramer of Swiss Post to admit that demand for same-day deliveries hasn’t grown as anticipated. The shutdown is expected to result in job losses, affecting approximately 143 full-time equivalent roles, primarily in Switzerland’s German-speaking and Western regions. To manage this, Swiss Post is engaging with stakeholders to explore strategies for reducing job cuts and is considering whether these affected workers can be transferred to other roles within the organization, aiming to cushion the impact of the subsidiary’s closure.
