The Isle of Man's main Post Office branches in Regent Street, Douglas, and Parliament Street in Ramsey will close early next year.
Post Office chairman Graham Cregeen says the aim is to reduce annual losses of ?750,000 per year, with the two branches accounting for two thirds of this loss. Instead, sub-Post Offices will be opened in nearby newsagents.
Talks are under way with staff. In a statement, the Post Office says Mannin Retail has given a commitment that all staff will be offered a position in the sub-post offices.
Mr Cregeen said: 'Isle of Man Post Office needs to navigate the current economic challenges we face as mail volumes and retail transactions continue to fall. We believe that the Post Office retail network has a crucial role to play in sustaining retail activity in the Island's communities and we're committed to providing this.
'Converting the two branches to Sub Post Offices will deliver substantial operational savings which we believe will reduce our losses
by enough to protect the retail network into the future whilst ensuring a continued high quality service is provided to our customers.
'In considering the options to convert these branches, the Board was extremely concerned about the impact any change over would have on the very dedicated and loyal staff working in these areas. Mannin Retail Limited has given the Post Office an undertaking that all opportunities for new employment created by this change will be made available to Post Office employees.
'Isle of Man Post Office will be working very closely with Mannin Retail Limited to ensure that all aspects of the transition go as smoothly as possible for all of our customers and employees alike.'
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