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Cabinet backs plan to cut 7 000 jobs at Post Office in bid to stave off liquidation | Business

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The SA Post Office, which is in provisional liquidation, owes hundreds of millions of rands to creditors, landlords, its medical aid fund and its pension fund. | News24_Business

Cabinet has backed a plan to radically reduce the SA Post Office's staff to stop it from being liquidated.The Dept. of Communications and Digital Technologies has gone to court to have SAPO placed into business rescue. The Department of Communications and Digital Technologies has filed an application with the North Gauteng High Court in Pretoria to place the SA Post Office in business rescue in a bid to save it from liquidation.

SAPO has been making losses of more than R2 billion a year for the past three years. Of its 1 108 branches, only 193 make a profit. In court papers, meanwhile, the minister warned that the liquidation of SAPO would have"dire consequences".

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