At the turn of the year, PostNord—Denmark’s postal service for 400 years—will deliver its last letter, marking the end of an era. This historic change comes as the company shifts its focus entirely toward parcel delivery in response to the rapid digitalization of communication.
PostNord: a leading Nordic postal & logistics company
PostNord, established in 2009 through the merger of Denmark’s Post Danmark A/S and Sweden’s Posten AB, is a major postal and logistics provider in the Nordic region. With deep historical roots in traditional mail delivery and a strong drive toward innovation, the company has evolved to meet the demands of the digital era and e-commerce. Serving millions across Denmark and Sweden, PostNord now focuses on efficient parcel delivery to keep pace with modern consumer needs.
Digital transformation accelerates decline in letter volume
Digitalization has dramatically reduced the number of letters sent in Denmark, with volumes falling by over 90% since the year 2000. In 2024 alone, letter dispatches dropped by more than 30% compared to the previous year. As a result, PostNord announced that from 2026 it will no longer deliver letters, with the final letter scheduled for delivery on December 30, 2025.
Job cuts and employee transition: PostNord’s restructuring
The restructuring will have a significant impact on PostNord’s workforce. The decision affects approximately 2,200 employees in the letter division, with plans to cut around 1,500 positions over the coming year. However, about 700 employees are expected to be offered new roles in the rapidly growing parcel sector. Additionally, familiar red post boxes—approximately 1,500 in number—will be removed from Danish streets, symbolizing the end of a long-standing tradition.
In an emergency meeting, PostNord Denmark’s CEO Kim Pedersen stated,
“We have been the Danes’ postal service for 400 years, and therefore it is a difficult decision to close that chapter of our history.”
He further explained,
“When a letter costs 29 kroner (approximately €3.90), then it is clear that there will be fewer of them. And fewer letters means that it will be harder to make it work.”
These remarks underscore the dual pressures of rising costs and dwindling demand in the traditional letter market.
Financial implications and Government compensation
The transition comes amid financial challenges for the company. In the autumn, the PostNord Group reported a loss of 395 million kroner (approximately €53 million) for the first three quarters of the year. The introduction of a new postal law in 2024—which ended the tax exemption for postage and removed a key state subsidy—has further strained the company’s finances.
In response, the Danish Government has pledged a one-time compensation of 600 million kroner (approximately €80 million) to assist PostNord Denmark with the closure of its letter service, aiming to secure a sustainable future for the company.
Focusing on parcel delivery in Denmark
With a long-established legacy in letter delivery now coming to a close, PostNord is refocusing its strategy on the parcel market—a sector experiencing robust growth driven by e-commerce. The company’s new role comes after a broad political agreement in 2023 that ended its traditional monopoly, requiring PostNord to compete on equal terms with other logistics providers such as GLS, DAO, and UPS.
This strategic pivot not only aligns with current market trends but also positions PostNord as the leading parcel delivery service in Denmark and the Nordic region. The change reflects both a necessary adaptation to a digital era and an opportunity for future growth in a more dynamic market.
Historic decision
The historic decision to end letter delivery marks a major turning point for PostNord and Denmark’s postal tradition. As the company transitions to a focus on parcel services, it faces both significant financial challenges and a major restructuring of its workforce. With government support and a clear strategic vision, PostNord is set to redefine its role in a rapidly evolving logistics landscape.
