Canada Post will begin to phase out door-to-door mail delivery and convert service to community mailboxes, the Toronto Star reported Wednesday.
The postal agency plans to cut between 6,000 and 8,000 jobs over the next five years, and raise the price of stamps.
"A leaner workforce will create a more flexible and competitive Canada Post, able to respond quickly to the changing marketplace," the agency said in a statement. "Canada Post has a mandate to fund its operations with revenues from the sale of its products and services, rather than become a burden on taxpayers."
The overall plan will save the postal service between $700 million and $900 annually, while the stamp hike is expected to generate between $160 million to $200 million.
"Due to the lack of demand, mail volumes have dropped almost 25 percent per address since 2008 and continue to fall. This is leading to a steep decline in revenues for Canada Post," Transport Minister Lisa Raitt said.
Similarly, the U.S. Postal Service has sought legislation to support a shift to a five-day mail delivery service and closing some rural locations.
Last month, the U.S agency said it had a loss of $5 billion in fiscal 2013. It said it reduced work hours by 12 million and consolidated mail processing centers this year.