Postfinance plans to improve its efficiency and to cut costs across several divisions. The measures will lead to a reduction of its headcount by 500 full-time-equivalents within 18 months, the company said in a statement (in German) on Tuesday.

Attrition will account for about two thirds of the cuts, Postfinance said, which also expects to create new jobs while eliminating others.

Strong Contraction

«We will however have to issue some dismissals. This is painful, but unavoidable for the long-term competitiveness and continued existence of Postfinance. This is evident from the strong contraction in the first quarter of 2018. Doing nothing isn’t an option as the negative trend is likely to continue,» said CEO Hansruedi Koeng.

Postfinance is struggling to cope with lower margins and a decline in revenue. The company also has to contend with the negative interest rates imposed by the central bank while not being able to sell mortgages and loans.