Hongkong Post says it will stop offering permanent civil service contracts to new employees as a cost-saving measure linked to a worsening financial outlook. Postmaster General Leonia Tai Shuk-yiu says new staff who pass probation in or after September will be offered two-year contracts on civil service terms.

The decision comes as the organisation faces a projected continued decline in mail traffic and declining business volumes. South China Morning Post and Hong Kong Free Press both report that the change is intended to help manage human resources more flexibly and reduce operating costs. Hong Kong Free Press also says the postal service is considering further measures that may include branch closures, while South China Morning Post focuses more on the contracting and staffing plan. Both outlets tie the policy shift to ongoing financial strain and lower mail demand rather than any single incident.

While the outlets’ emphasis differs—one highlighting staffing contracting details and the other additionally mentioning potential network changes—both describe the same core move: replacing permanent posts for new hires with time-limited civil service contracts beginning around September.