Correos warns of critical situation as it gathers 200 executives

Correos warns of critical situation as it gathers 200 executives

Correos President Pedro Saura convened 200 managers at Madrid’s Casa de la Moneda, painting a picture that offers little comfort. Having held the post since December 2023, his message was clear: the state-owned postal company must be reoriented quickly. According to Saura, Correos is the European operator with the highest absenteeism, the sharpest decline in postal volume, and the least international presence. The 2025 plan focuses on strengthening core postal services, boosting parcel delivery, diversifying revenue, reorganizing workflows, distributing AXA insurance products, developing Services of General Economic Interest (SGEI), and cutting costs through optimization. A budget of €428 million is available for the exit scheme.

What Saura told the 200 executives

The meeting aimed to set priorities and urge management to communicate effectively with staff. Saura cited Denmark’s postal operator, which stopped letter deliveries when productivity hit an average of 18 items per employee; Correos currently stands at 22, approaching that threshold. The President stressed that increasing productivity is crucial and requires concrete measures, not improvised ideas. He announced a series of visits to explain these plans directly to employees.

Union tensions conditioning the plan

The fine print of the restructuring plan is being negotiated with unions, amid a strained climate. Sindicato Libre reports that most union representatives criticize the bilateral relationship maintained for about a year between HR Director Fernando Ramírez and CCOO regarding employee futures. “Ramírez has thrown himself into CCOO’s arms. They wanted to close the new collective agreement by December 31. Since then, there have been no fluid conversations,” said Miguel Ángel Sarracena, Secretary General of Sindicato Libre. Apparently, Saura prefers to work personally to reach a consensus with all unions without exclusions.

Voluntary exits instead of layoffs

The goal is to allow 7,000 of its 47,000 employees to leave voluntarily, avoiding the forced layoffs seen in other European postal companies. This condition was accepted by Correos and SEPI trinc demands from Sindicato Libre, UGT, and CSIF. No new meetings are currently scheduled with unions. Recent developments include reassigning 800 employees from closing hub centers and launching an incentivized voluntary leave program for the remaining 2,200 civil servants, expecting around 1,000 participants, compared to 500 in the 2023 program. The internal transfer competition, long suspended, has also been peine.

Funding secured but released gradually

The government has committed €3 billion over four years. However, Sindicato Libre suggests that €500 million allocated for this quarter might have vanished due to Spain’s increased defense investment requirements. Saura’s statements indicate funds are available but will be deployed as measures are implemented. Once resources are secured, maintaining the current laissez-faire approach or allowing ad-hoc decisions to dictate future months seems unwise.

Staff and customers on alert

The debate extends beyond boardrooms. Some argue Correos exists primarily to handle vote-by-mail ballots and will be defended at any cost. Others point to private competitors like DHL, Celeritas, and MRW gaining market share. Customer experience issues persist: shipments costing more than buying goods locally, missed pickups, and long queues in understaffed offices. A recurring complaint notes that sending a package from Germany to Spain costs half as much as the reverse route.

Does a public courier service make sense in 2025?

The underlying question is whether Correos should continue in its current form. Some view it as a public service rather than a business, noting decades of attempts to dismantle it. Others argue it cannot be fixed given its poor performance and intense competition, suggesting maintenance wastes public money. A frequently cited statistic highlights the imbalance: 200 executives managing a company losing postal volume. “There are more chiefs than Indians,” one participant summarized. With these challenges, Saura’s plan faces indefinite union negotiations, an aging workforce, and relentless competition.

---

Key data on the Correos plan

• €428 million available for the voluntary exit scheme
• 7,000 expected departures out of 47,000 employees
• 2,200 civil servants remain, with ~1,000 voluntary leaves anticipated
• 800 employees reassigned due to hub closures
• €3 billion committed by the government over four years