State run Zambia Postal Services has fired 98 workers as at 8th October 2015. An additional 30 have left the corporation this year through normal retirement.
Communications Deputy Minister James Kapyanga told Parliament on Tuesday that the job cuts at ZAMPOST were inevitable.
Mr Kapyanga announced that all those retrenched and retired have been given their retirement packages in half whilst their balances are been paid out on a monthly basis.
He said ZAMPOST failed to respond to market competition following the emergency of strong competition.
Mr Kapyanga revealed that ZAMPOST lost its K1.8 million swift cash monthly revenue due to stiff competition from Shoprite, Zoona and Mobile Money transfers which he said are competing on low charges resulting in ZAMPOST loss of market share.
Mr Kapyanga said staff lay off became inevitable at the corporation after threat of collapse due to litigations and bailiff seizures.
He said the number of workers had to be downsized in order to restore performance viability.
And Communications Minister Kapembwa Simbao announced in Parliament that ZAMPOST will soon be transforming into a bank.
Mr Simbao noted that the fall in the demand for postage stamps has forced ZAMPOST to enter into the provision of banking services especially in the rural areas.