Canada Post is to phase out home delivery in urban areas over the next five years.
Under a five-year plan released on Wednesday, the cost of stamps will also rise and as many as 8000 jobs will be eliminated. But the agency will also open more retail locations across Canada.
CBC News reported Canada Post lost C$73 million in the third quarter of the current fiscal year and
the service faces a projected loss of C$1 billion by 2020 without "fundamental changes".
Direct to the home delivery will be replaced by community post boxes installed throughout residential areas, Canada Post said.
The agency said two-thirds of Canadians, mostly in newer suburban neighbourhoods and rural areas, already receive their mail through this method.
Canada Post delivers almost 10 billion letters and parcels each year but the BBC reports it has seen a 24% drop in letter deliveries since 2008.
