Denmark’s Postnord to halt letter deliveries by 2025, ending 400-year postal tradition

CONPENHAGEN: Denmark’s state-run postal service, PostNord, has announced plans to cease all letter deliveries by the end of 2025, marking the end of a 400-year era in letter service.

This decision comes in response to a staggering 90 percent decline in letter volumes since the early 2000s. Starting in June, the 1,500 post boxes throughout Denmark will begin to be removed.

Transport Minister Thomas Danielsen reassured the public that while traditional letter deliveries will end, sending and receiving letters will still be possible in a competitive market that includes both letters and parcels, reported the BBC.

Postal services across Europe are facing similar struggles with decreasing letter volumes; for instance, Germany’s Deutsche Post recently announced it would cut 8,000 jobs in a bid to adapt to the changing landscape.

Historically, Denmark maintained a universal postal service, but with the rise of digital communication, the need for physical letters has diminished significantly. PostNord plans to redirect its focus towards parcel deliveries, and it has offered to refund postage stamps purchased this year or in 2024 for a limited period in 2026.

The move has significant implications for the postal workforce, as approximately 1,500 employees out of a total of 4,600 may lose their jobs. Employee Anders Raun Mikkelsen expressed the somber sentiment shared by many, noting the uncertainty that lies ahead for affected workers.

Denmark is one of the world’s most digitally advanced nations, with a widespread adoption of apps for various services. The use of cash is minimal, and citizens often rely on digital formats for bank statements, bills, and official communication from the government. However, a segment of the population, especially the elderly, remains reliant on physical mail. Despite 95 percent of Danes using the Digital Post service, around 271,000 individuals still depend on traditional letter deliveries for important communications such as hospital appointments and home care arrangements.

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Reduction in letter volumes has become increasingly pronounced, with PostNord reporting a drop from 1.4 billion letters early in the century to just 110 million last year. Danish MP Pelle Dragsted criticized the privatization of postal services, arguing that it disproportionately impacts residents in remote areas where access to alternatives may be limited.

The introduction of a new Postal Act in 2024 will open the market to competition from private firms and removes VAT exemptions on mail, which is expected to drive up postage costs. Managing Director of PostNord Denmark, Kim Pedersen, noted that the cost of sending a letter—currently 29 Danish krone (£3.35; $4.20)—is a significant factor in the declining volume. He highlighted that many Danes have shifted towards digital communication, resulting in a notable 30% decrease in letter volumes just over the last year.

PostNord also operates in Sweden and is owned 40% by Danish interests and 60% by Swedish.