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Post Office Faces Historic Crisis After Billion-Dollar Loss Triples in a Year, Pressuring Leadership and Increasing Risks of Deep Administrative Restructuring
The Post Office recorded a loss of R$ 4.37 billion in the first half of this year, according to data released by O Globo.
The figure is three times greater than the deficit of R$ 1.35 billion recorded in the same period last year. The result reinforces the crisis scenario faced by the state-owned company.
Management of the Post Office Under Scrutiny
The severity of the situation led the company’s president, Fabiano Silva, to submit a resignation letter to the Palácio do Planalto last month.
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Despite this, Silva still remains in office and is awaiting a decision about his future. Therefore, the impasse in leadership exposes the difficulty in finding a political and administrative solution to the problem.
Negative First Quarter
In the first quarter, the Post Office had already recorded a deficit of R$ 1.72 billion. Given this context, the management considered requesting additional funding from the federal government.
Furthermore, in 2024, the company closed with a net loss of R$ 2.6 billion, four times greater than the R$ 597 million in 2023.
The growing deficit is mainly attributed to a decline in international parcel revenue. The sector was heavily impacted by the new taxation on imported goods, known as the “little shirt tax.”
Competition from private companies, especially in the transport of goods from China, has also increased the difficulties.
Revenue and Expenses
The revenue of the state-owned company fell by 0.89%, down from R$ 21.67 billion to R$ 21.47 billion. At the same time, operating expenses rose by about 8%, increasing from R$ 22.3 billion to R$ 24 billion.
This increase was driven by payroll, legal costs, and expenses related to the universalization of postal services.
To face the crisis, management is studying expanding the voluntary resignation program (PDV), reducing working hours, and promoting a comprehensive administrative restructuring.
With information from O Antagonista.
