Struggles in Postal Service: Proactive Structural Reforms Essential to Preserve Vital Infrastructure

Editorial

16:59 JST, June 1, 2026

The postal service has been unable to extricate itself from its struggles despite being part of the foundation of people’s lives. It is essential to proceed with bold structural reforms to maintain uniform services nationwide.

Due to a decline in mail volume driven by the progress of digitalization, Japan Post Holdings Co.’s mail and logistics business has posted operating losses for three consecutive years since fiscal 2023. In response, the company has outlined structural reform measures as a medium-term management plan for the period from fiscal 2026 to fiscal 2028.

The company plans to reduce the number of collection and delivery bases for mail and other items by 500 to 2,700, and reduce its workforce by about 10,000 people. Given the current situation of chronic deficits, streamlining is likely unavoidable.

The company said that about 24,000 post offices will be maintained, but half-day operations and other measures will be expanded to curb labor costs. It is crucial to devise ways to ensure any such changes do not lead to a significant decline in service quality.

While letters and postcards are fundamental services for the public as a means of communication, the current situation is dire. Mainly due to the growing use of social media, mail volume has halved from its peak in fiscal 2001 of 26.3 billion. It is projected to drop to 10.5 billion in fiscal 2028.

This is a serious situation, with the postal and logistics business deficit expected to swell to ¥173 billion in fiscal 2028.

Japan Post Holdings said it will consider raising postal rates in addition to streamlining operations. However, a large rate hike was just implemented in October 2024. Unless the company thoroughly demonstrates its streamlining efforts and provides a full explanation, it could actually accelerate the shift of people away from using postal services.

Postal services are regulated by law, which stipulates requirements such as the frequency of delivery, the number of days from posting to delivery and the number of mailboxes.

Japan Post Holdings hopes that these mandatory requirements will be relaxed to facilitate cost reductions. The company must carefully examine how these services are actually used and engage in in-depth discussions with the Internal Affairs and Communications Ministry.

There are increasing cases where post offices not only handle mail but also act as municipal government service counters, engaging in such tasks as issuing certificates. In regional areas, more financial institutions are consolidating or closing their branches, increasing the role of post offices as essential infrastructure that provides postal, savings and insurance services all under one roof.

It is important to work on management improvement measures for all the group companies, along with postal service reforms. Ideally, profitability can be enhanced by strengthening growth sectors such as real estate and logistics.

In recent years, the Japan Post Group has been plagued by a stream of misconduct, including flaws in roll call procedures for delivery personnel and the unauthorized use of customer information. To advance structural reforms while gaining public understanding, it is necessary to rebuild corporate governance and thoroughly adhere to legal compliance systems.

(From The Yomiuri Shimbun, June 1, 2026)