Australia Post are cutting around 400 jobs at their Melbourne head office by the end of the financial year, with the cuts already begun.

Australia Post haven’t confirmed numbers, but it is reported that the cuts are starting at the upper level – executive, general manager and heads of department – and working down through head office, with the vision of creating a more streamlined organisation. They say no frontline roles will be affected.

A spokesperson says, “Australia Post has for a number of years been flagging the significant structural headwinds it is facing.

“Globally, letter volumes are declining due to increasing uptake of technology.”

At its recent half-year financial results, Australia Post announced it will report a full-year loss, the first time since 2015.

“With ongoing letters losses, and parcels growth moderating, a new operating model for Australia Post’s corporate support office is being introduced to simplify our business and operating support structures. This will, in part, help Australia Post respond to the financial pressures it is facing.

“As an entirely self-funded business that receives no taxpayer funding, Australia Post needs to adapt the structure of its support office team to be more efficient and face into these challenges. These changes are aligned with our Post26 strategy and designed to allow Australia Post to continue its critical role for Australian communities into the future.’’

The federal government recently released a discussion paper aimed at modernising Australia Post to make it more financially sustainable, with chief executive Paul Graham saying at the time that the letter side of the business had been in an “unstoppable decline since 2008 and the 214-year-old postal service faces an uncertain future as fewer people send letters and consumers increasingly embrace digital services.”

Homes now receive a third of the amount of letters compared to 2007-08, with an average of 2.4 letters a week, with that number expected to be cut by 50 per in the next five years.