Correios Details Recovery Plan With 1,000 Branch Closures and 15,000 Voluntary Exits

Overview

• The state-run postal operator secured a Union-guaranteed R$12 billion loan from Bradesco, Itaú, Santander, Caixa and Banco do Brasil, with R$10 billion disbursed in 2025 and R$2 billion set for 2026 under a contract running to 2040.
• The plan unfolds in three phases through and after 2027, starting with short-term liquidity and debt renegotiation, followed by two years of restructuring and a post-2027 review of the business model that could include organizational changes.
• Measures include two voluntary dismissal programs targeting 15,000 employees, closure of about 1,000 deficit agencies, reductions in health and pension contributions, and sale of properties projected to raise roughly R$1.5 billion.
• Correios projects personnel savings of about R$2.1 billion annually and overall expense cuts of roughly R$5 billion by 2028, as it seeks to rebalance a cost base in which around 60% of expenses are tied to staff.
• After a R$2.6 billion loss in 2024 and about R$6 billion accumulated in 2025 to September, management expects losses to persist through 2026 and targets a return to profit in 2027, supported by diversification, logistics partnerships and a proposed R$4.4 billion NDB modernization loan.