Earlier today, Canada Post stunned reporters by formally releasing a statement that reveals it will be phasing out home delivery in urban areas over the course of the next five years.

The organization has long considered making a drastic shift in the way it distrbutes mail in the last few years as rising costs of its pension plan and the general public’s increasing reliance on digital mail has decreased use of traditional mail service to the point that it has become untenable.

Nearly one-third of Canadians still receive traditional mail. The new format will see mail delivered to urban sectors via a shared space, known as a community mailbox. Additionally, on March 31st, the price of stamps bought in a pack will rise from 63 cents to 85 cents. Canada Post also plans to shed 6,000-8,000 of its 68,000 employees. 

“With the increasing use of digital communication and the historic decline of letter mail volumes, Canada Post has begun to post significant financial losses,” reads one part of the release.

Looking over statistics from any reports about the corporation backs this up. Canada Post lost $129 million in Q3. And according to a study done by the Conference Board of Canada, the company has been losing nearly $1 billion a year. The study also states that if Canada Post gets rid of door-to-door delivery, it will save $576 million a year by 2020.

Rural areas will still receive door-to-door delivery.

(via: CBC) 

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Jordan Sowunmi is a writer and editor at the Toronto Standard. He is on Twitter: @jordanisjoso
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