Key Takeaways
- Danish letter carriers' bags are getting lighter due to a 90% drop in letter volume since 2000, largely from fewer invoices and bank statements.
- The removal of red letterboxes in Denmark is progressing, ending 400 years of letter delivery service.
- Digital communication through apps like WhatsApp and online shopping has reduced the need for traditional letters.
- Job losses in the postal sector will affect about 2,200 employees, while 700 new jobs in parcel delivery will be created.
- The decline in letter sending is a global trend, with many countries seeing significant reductions in letter volume.
For many years, the bags that Danish letter carriers use have been getting lighter and lighter. Since the year 2000, the amount of letters sent has dropped by about 90 percent. A major part of this drop is due to invoices and bank statements.
Removal of Red Letterboxes
The 1,500 red letterboxes still found on Denmark's streets are slowly being taken away. Back in March 2000, PostNord first announced its plan to end letter delivery after 400 years, and this process is now in its final stages.
Shift to Digital Communication
The rise of digital technology means that very few people write and send letters these days. Instead, messaging apps like WhatsApp, Telegram, and Signal have become the go-to for communication. The increase in online shopping, which often involves cashless payments through apps and the use of digital mailboxes, has also contributed to this change.
Job Changes in the Postal Sector
About one-third of PostNord’s workforce—around 2,200 individuals—will be affected by job losses. At the same time, there will be around 700 new jobs created in the expanding parcel delivery sector. Even though Denmark ranks as one of the most digitized nations, according to the OECD's 2023 Digital Government Index, the trend of decreasing letter deliveries can be seen in many countries around the globe. A report from management consulting firm McKinsey shows that the number of letters sent worldwide has dropped significantly.
In the United States, the decline since its peak has reached 46 percent, with many other nations experiencing even larger reductions ranging from 50 to 70 percent. Germany and Switzerland have seen the least impact, with a decline of about 40 percent. Hazel King, the editor-in-chief of Parcel and Postal Technology International magazine, comments on the situation:
Market Trends and Future Outlook
Letters have been decreasing across Europe for many years. I believe PostNord's choice is a sign of the overall market shift and reflects consumer behavior.
However, Hazel King isn't certain if mailing letters is doomed to disappear completely. In Denmark, the private delivery service DAO plans to take over the remaining letter deliveries with its own national service.
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