Denmark postal service to stop delivering letters
The decision brings to an end 400 years of the company's letter service. Denmark's 1,500 post boxes will start to disappear from the start of June.
Transport Minister Thomas Danielsen sought to reassure Danes, saying letters would still be sent and received as "there is a free market for both letters and parcels".
Postal services across Europe are grappling with the decline in letter volumes. Germany's Deutsche Post said on Thursday it was axing 8,000 jobs, in what it called a "socially responsible manner".
Deutsche Post has 187,000 employees and staff representatives said they feared more cuts were to come.
Denmark had a universal postal service for 400 years until the end of 2023, but as digital mail services have taken hold, the use of letters has fallen dramatically.
Fifteen hundred workers facing losing their jobs, out of a workforce of 4,600.
"It's a super sad day. Not just for our department, but for the 1,500 who face an uncertain future," employee Anders Raun Mikkelsen told Danish broadcaster DR.
Denmark ranks as one of the world's most digitalised countries.
There's an app for almost everything: few people use cash, and Danes even carry drivers' licences and health cards on their smartphones.
Bank statements, bills, and correspondence from local authorities are all sent electronically.
Public services send communications via a Digital Post app or other platforms and PostNord Denmark says the letter market is no longer profitable.
Letter numbers have fallen since the start of the century from 1.4 billion to 110 million last year.
The decision will affect elderly people most. Although 95% of Danes use the Digital Post service, a reported 271,000 people still rely on physical mail.
"There are many who are very dependent on letters being delivered regularly. These include hospital appointments, vaccinations or decisions regarding home care," Marlene Rishoj Cordes, from Aeldre Sagen (DaneAge) told Denmark's TV2.
PostNord has weathered years of financial struggles and last year was running a deficit.
Danish MP Pelle Dragsted blamed privatisation for the move and complained the move would disadvantage people living in remote areas.
The introduction of a new Postal Act in 2024 opened up the letter market to competition from private firms and mail is no longer exempted from VAT, resulting in higher postage costs.
"When a letter costs 29 Danish krone (£3.35; $4.20) there will be fewer letters," PostNord Denmark's Managing Director, Kim Pedersen, told local media.
He said Danes had become increasingly digital and the decline in letter volumes had become so pronounced that it had fallen by as much as 30% in the past year alone.
The company said it would switch its focus to parcel deliveries and that any postage stamps bought this year or in 2024 could be refunded for a limited period in 2026.
PostNord also operates in Sweden. It is 40% Danish-owned and 60% Swedish-owned.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a day ago
- Yahoo
Denmark's Economy Runs on Novo. Will the Drugmaker's Troubles Slim It Down?
(Bloomberg) -- Denmark's status as one of the few countries in Europe with an expanding economy rests in part on the success of its homegrown hero, Novo Nordisk A/S. Thanks to the pharmaceutical giant's astronomical rise, the country enjoyed growth of 3.5% last year, outpacing most nations in the region. But after a series of stumbles, Novo is struggling to retain its edge in the cutthroat US weight-loss market. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Seeking Relief From Heat and Smog, Cities Follow the Wind NYC Mayor Adams Gives Bally's Bronx Casino Plan a Second Chance That, in turn, is generating concern about whether the company's troubles could lead to mass layoffs or become a drag on the broader Danish economy. Novo's market value shrunk by almost $100 billion this week after the company cut its profit outlook on Tuesday, citing intensifying competition and copycat drugs in the US. It marked the second time this year that the drugmaker pared back its earning projections. Shares plunged 23% — the steepest single-day drop on record — and its stock has continued to slide in the days since. Novo's bad news translated into an immediate financial blow to Danish households. Outside of pension savings, Danes lost 38 billion kroner ($5.8 billion) in regular stock portfolios on Tuesday alone, according to estimates by Sydbank A/S. That's the equivalent of almost 3% of total annual private consumption. 'There will be shareholders who have lost rather large amounts,' said Mikael Bak, chief executive officer of the Danish Shareholders' Association. 'It's quite conceivable that we'll see some Danish investors holding back on things like buying a new car or booking an expensive vacation.' Given Novo's size, the damage could ripple beyond the stock market. Economists have warned that a prolonged Novo slump could drag on the country's exports — a concern shared by the state's financial watchdog, which slashed its export forecast in May following a profit warning from Novo — and even influence interest rates. Moreover, since the drugmaker's production counts toward Denmark's gross domestic product, any roll-back of expectations will 'almost mechanically' impact the country's growth numbers, said Las Olsen, chief economist at Danske Bank A/S, Denmark's largest lender. 'Lower growth in Novo means lower GDP growth in Denmark, it's as simple as that,' said Olsen. A decline in drug sales did cause the Danish economy to shrink slightly in the first quarter, according to Statistics Denmark, and second-quarter GDP numbers will be released on Aug. 20. Novo is still growing, Olsen stressed, but if it were to flatline completely, Denmark would cease to be among Europe's highest growth economies. Soren Kristensen, chief economist at Sydbank, cautioned against reading too deeply into Novo's dip. Analysts predict the company's revenue and profit growth will continue through the end of the decade, and Kristensen emphasized that so long as the firm's earnings are increasing, the Danish economy will benefit. Still, he added, Novo is 'in a slightly more vulnerable position' than previously assumed. 'If things were to take a turn for the worse,' he said, 'the effects would show up in quite a few areas.' He pointed to the country's industrial production and exports as most exposed. Novo's vast output has helped drive Denmark's large surplus and bolstered the krone. That has made it necessary for the Danish central bank to maintain a lower interest rate than the European Central Bank's to defend the currency peg. Should exports take a major hit, however, Kristensen said that Denmark might need to reverse course and raise its rates. Within Denmark, a sustained Novo slowdown could also limit funding increases in scientific research, healthcare and social programs, Olsen said. That's because the Novo Nordisk Foundation, which owns a controlling stake in the company, has significantly ramped up its grantmaking in these areas on the back of soaring profits from blockbuster drugs Wegovy and Ozempic. The foundation supports the work and salaries of around 9,500 scientists. Novo's rise in recent years has fueled broader concern about Denmark becoming overly reliant on a single company. To those worried about the drugmaker's outsized role in the country, its setbacks this week evoked specters of Nokia Oyj, the Finnish telecommunications giant whose slump in the early 2000s dragged down Finland's entire economy. Denmark's Prime Minister Mette Frederiksen admitted in an interview last year that officials need to keep an eye on the risks linked to Novo's dominant position, but brushed off Nokia comparisons, noting that the economy's strengths aren't concentrated in the pharmaceutical sector alone. Olsen from Danske Bank takes a similar view. He noted that Novo is still growing, while Nokia underwent a serious contraction, and argued that even if Novo were to experience a similar downturn, Denmark's economy would be better positioned to absorb the shock. For all its growth, he said, the drugmaker has a limited impact on national employment and wages — both of which remain resilient — and the Danish economy is more flexible on account of its adaptive wage structures and rules that make it easier to fire employees. Denmark also relies on large inflows of foreign labor to meet workforce needs, which can be adjusted as needed. Still, the company directly employs more than 30,000 people in Denmark. If layoffs are in the offing, as new CEO Maziar Mike Doustdar has hinted, key Novo hubs such as Kalundborg and Bagsvaerd are likely to take a hit. Outside of the agricultural industry, Novo was responsible for half of all private-sector job growth in Denmark between early 2023 and 2024, according to the state's fiscal watchdog. 'Locally, it could feel quite severe, even if it doesn't show up strongly in national figures,' Kristensen said, especially as cuts and investment reductions are likely to reverberate through Novo's network of suppliers and contractors. Nowhere in Denmark have Novo's rising fortunes registered more strongly than in Kalundborg, home to the company's main production facilities. As corporate tax revenue from Novo has surged more than tenfold since 2011, unemployment has dropped to record lows and the town has experienced a boom. Novo's factory expansions and rapid hiring have bolstered local businesses, universities and research programs have flocked to the town, and investment is flowing into housing and infrastructure. 'What's been the impact of the massive growth in Novo Nordisk?' Olsen said. 'It's delivered GDP growth, shareholder returns, extra tax revenue and a current account surplus. So if the situation were to go the other way, all of those effects would naturally reverse.' How Podcast-Obsessed Tech Investors Made a New Media Industry Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Russia Builds a New Web Around Kremlin's Handpicked Super App Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts What's Really Behind Those Rosy GDP Numbers? ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
2 days ago
- Yahoo
Barcelona sporting director sends clear message to defensive outcast
Barcelona are facing a race against time as they look to not only register the new signings but also get the Camp Nou prepared for September matches. In the midst of all that, the club are facing a financial crunch once again and desperately require fresh sales in order to balance the books and return to the 1:1. Following the departures of Pablo Torre, Pau Victor and Ansu Fati, the next player in line to leave Barcelona this summer is Andreas Christensen. But the Dane, despite being considered a benchwarmer, has appeared hesitant to leave Barcelona. Deco's clear message to Christensen According to Diario SPORT, Barcelona, led by sporting director Deco, has sent a clear message to Christensen: renewal is off the table, and the door is open if he chooses to leave. Deco has already tied down most of the squad to long-term contracts as part of his ongoing renewal project. Jules Kounde, Eric Garcia, and even Frenkie de Jong are set for new extensions next week. The only outlier is Christensen, whose deal expires in 2026, with no extension talks planned. Andreas Christensen has no intention to leave (Photo by) Barcelona are reportedly open to selling the Danish international, who is on a relatively high salary and spent much of last season injured. With an overbooking of centre-backs in the squad, Deco is focused on trimming the wage bill and building a younger, more sustainable core. However, the 28-year-old has no intention of walking away. Much like his exit from Chelsea, Christensen is prepared to stay until the end of his contract. Despite interest from Saudi Arabia and the Premier League, he has refused to even engage in negotiations. Convincing the Dane, therefore, will be one of Deco's priorities in the month of August.
Yahoo
3 days ago
- Yahoo
Novo Nordisk shares dip further as Wegovy gains nearly erased
By Jacob Gronholt-Pedersen (Reuters) -Shares in Novo Nordisk fell as much as 6% on Friday before recovering some ground later in the session, extending recent losses that threaten to wipe out all the gains since the drugmaker launched its blockbuster weight-loss treatment Wegovy four years ago. The fall on Friday means the Danish firm has dropped out of the top 10 constituents of the Europe-wide STOXX 600 index. Share price declines across the sector were prompted by U.S. President Donald Trump, who sent letters on Thursday to 17 major pharmaceutical firms, including Novo Nordisk, telling them to cut drug prices in the United States. Novo Nordisk on Tuesday slashed its forecast for 2025 sales growth due to competition from compounded, or copycat, versions of Wegovy and appointed veteran insider Maziar Mike Doustdar as its new CEO, prompting its shares to fall 23% on the day. Novo became Europe's most valuable listed firm after launching Wegovy in June 2021, worth some $650 billion in the middle of last year. But its shares have lost more than two-thirds since on concerns the drugmaker is losing ground in the obesity drug race. Its market cap is now $214.5 billion. "The U.S. healthcare system is complex, but Novo Nordisk will continue to work to find solutions that help people access the medicines they need at affordable prices," Novo said in an emailed statement. Novo's shares were around 2% lower at 1453 GMT, bringing this week's losses to around 30% - the stock's worst week ever. The European healthcare index was down around 1% to its lowest since April. "Trump doesn't have the mandate to tell Novo Nordisk how to price their products in the U.S., but investors are just panicking about the risk of another downgrade," said Nordnet analyst Per Hansen. The pressure to lower prices adds to Novo's problems in the United States, its biggest market. It faces competition from Eli Lilly and from compounders - custom-made medicines that are based on the same ingredients as branded drugs. "This is a repricing of the obesity market, it's a repricing of the United States as the world's most attractive drug market, and it's a repricing of the risk from Donald Trump," Hansen said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
