The new administration of Prime Minister Yukio Hatoyama has started considering reorganizing five arms in the Japan Post Group into three entities by having Japan Post Holdings Co., the core holding firm, absorb two of the five, government sources said Thursday.
The reorganization plan calls for having the holding firm absorb Japan Post Network Co. and Japan Post Service Co., whose profitability is widely feared to deteriorate, the sources said.
The reorganization is designed to enable the group to continue to offer mail delivery services nationwide with uniform quality without compromising service to sparsely populated areas, they said.