New Zealand Post has indicated that it is aiming to save up to $30 million during the coming one to two years.

The postal service is aiming to save the money by closing down three mail processing centres and cutting 500 jobs during the period. The service will close down its units in Wellington, Hamilton and Dunedin and expand centres located in Auckland, Palmerston North and Christchurch.

The company will also cut around 500 full and part-time jobs. Out of the total 500 job cuts, 73 will be in Dunedin, 163 will be in Wellington, 129 will be in Hamilton and a another 133 will be in satellite locations. At the same time the company will offer 380 new jobs meaning that the net job loss will be reduced to 120 jobs.

New Zealand Post chief executive Brian Roche said that the total mail volumes are fallin at 8 per cent a year and are expected to continue to fall in the coming future. According to data, the total number of items of mail fallen by 200 million during the previous ten years.

Mr Roche said that operating fewer centres will cut New Zealand Post's costs including leasing and operating costs for major facilities in multiple locations.