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

The grim warnings from top executives at its annual general meeting are the latest trouble sign at the mail carrier that experts say could collapse if it doesn't change course.

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.