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Post Office Expands Voluntary Dismissal Program and Plans to Cut 15 Thousand Employees to Face the Crisis and Reorganize the State-Owned Company.
The crisis at the Post Office has taken a new turn following the confirmation that the state-owned company intends to carry out 15 thousand layoffs through a Voluntary Dismissal Program (VDP). What is at stake is the restructuring of the company, which faces financial imbalances.
The measure, according to internal sources and documents released over the weekend, is expected to occur between 2026 and 2027, nationwide, as part of an effort to adjust costs and ensure liquidity.
The plan arises because the company needs to reduce expenses, restore cash flow, and present countermeasures to the government in order to obtain emergency support.
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Thus, the expected layoffs surpass the initial proposal by 50%, which anticipated 10 thousand dismissals. Now, the estimate is 10 thousand layoffs in 2026 and 5 thousand in 2027, according to CNN’s findings.
Expanded VDP Is Central Strategy to Reduce State-Owned Company Costs
In a statement released on Saturday (12/06/2025), the Post Office stated that the new Voluntary Dismissal Program is being “designed based on ongoing technical studies”.
The state-owned company also emphasized that “the focus is to ensure voluntary and economically viable participation, with a positive impact on fixed costs in the medium term”, adding that the objective is “to adjust the workforce responsibly, without disruptions and valuing those who have built the history of the Post Office”.
The expansion of the VDP is seen as a pillar to reduce permanent expenses and alleviate the crisis at the Post Office. Internally, the assessment is that robust participation opens up space for a new stage of the financial plan.
Emergency Funding of R$ 6 Billion Depends on Viable Plan
To get through the end of 2025 without unprecedented delays in salaries, 13th-month pay, and payments to suppliers, the Post Office is working to secure an emergency funding of R$ 6 billion still in December.
The state-owned company plans to present the Ministry of Finance with a revised proposal, reducing the loan that was previously negotiated — from R$ 20 billion — to an amount between R$ 10 billion and R$ 15 billion.
Sources linked to the discussions state that the amount may vary depending on the progress of the VDP and upcoming administrative measures.
The initial transfer, however, is considered sufficient to cover the projected deficit for 2025 and restore immediate liquidity.
Crisis at the Post Office Pressures Government and Requires Countermeasures
The change in strategy occurred after the previous operation failed, rejected by the National Treasury.
Technicians from the economic team classified the initial request as “impossible to accept”, due to the high risk for the Union.
The federal government maintains the position that any release of resources — whether direct funding, loans, or guarantees — will depend on a solid recovery plan.
Last week, the Minister of Finance, Fernando Haddad, reiterated that there will be no support without clear countermeasures, nor without alignment to fiscal rules.
State-Owned Company Attempts to Attract More Banks and Rebuild Credibility
Within the state-owned company, there is an understanding that it is necessary to broaden the portfolio of banks, as the electoral period has diminished the appetite of financial institutions.
Thus, the Post Office is now trying to reduce the size of the check to make the operation more attractive and seek lower interest rates.
With liquidity restored and the first containment measures implemented, the expectation is that the perceived risk by the market will decrease.
This could unlock cheaper funding in early 2026, with a higher likelihood of Treasury approval.
Post Office Establishes Goals to Maintain Deliveries and Avoid Operational Collapse
In an internal communication sent on Friday (12/05/2025), the management requested total focus on continuing deliveries and maintaining operations during the critical period.
The goal is to achieve 95% of orders delivered on time by January 2026, avoiding additional impacts on the reputation of the state-owned company.
The management emphasizes that the restructuring planned for 2025 to 2027 should prioritize cash flow and job preservation, although it admits that large-scale layoffs via VDP are inevitable in light of the financial crisis.
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