Australia Post to slash 1,900 jobs as business continues to suffer

Australia Post will be slashing nearly 2000 jobs as its traditional letter delivery business continues to struggle.

The ABC has reported that the postal service will offer 1900 voluntary redundancies within the next three years.

The news comes as Australia Post announced it was contending with a possible $500 million loss this financial year.

Managing director Ahmed Fahour said Australia Post had seen a record 10 per cent slide in mail deliveries in the past 12 months.

"We have reached the tipping point that we have been warning about where, without reform, the business becomes unsustainable," Fahour told the ABC.

It is the first time the postal service has suffered a full-year loss.

Fahour said that despite the dire situation, postal deliveries would continue five days a week.