By Brazil Stock Guide – Brazil’s state-owned postal service Correios has renegotiated 98.2% of its outstanding debt with suppliers and service providers, generating R$321 million in savings so far in 2026 as part of a broader restructuring effort.
The agreements were reached between January and Friday (13) and involve creditors waiving penalties and interest in exchange for payment of outstanding obligations. In some cases, the company will repay amounts through installment plans without additional corrections.
The renegotiations were enabled by a R$12 billion loan secured by Correios in late 2025 from a consortium of banks with a federal government guarantee, providing liquidity as the company works to stabilize its finances.
The postal operator is attempting to recover from the largest financial crisis in its history, after posting a R$6.057 billion loss between January and September 2025. Government projections still indicate a primary deficit of R$9.101 billion in 2026, with internal expectations that a full turnaround may only occur in 2027.
In addition to supplier renegotiations, the company also restructured about R$1.2 billion in tax and court-ordered payments, spreading those liabilities over longer periods to ease short-term pressure on cash flow.
Asset sales planned
Correios is also seeking to strengthen liquidity through asset disposals. The company plans to auction about R$600 million in properties later this month, mainly buildings located in medium- and large-sized cities.
Management expects 20% to 40% of the assets to be sold, potentially generating up to R$120 million in proceeds in the near term. The broader restructuring plan targets R$1.5 billion in property sales.
Workforce reductions underway
The restructuring strategy also includes a voluntary layoff program (PDV) targeting up to 10,000 employees. Around 500 workers have already left the company, with another 1,000 departures expected by Monday (16).
Correios has also closed 127 service locations so far as part of a plan to shut down up to 1,000 points of service.
Cost reductions and operational targets
The company has implemented internal cost-cutting measures, including changes to its employee health plan Postal Saúde, which generated about R$70 million in savings in January alone. Total savings in 2026 are projected to reach between R$500 million and R$700 million.
Operational performance has also improved. Internal data cited by Broadcast show the share of on-time deliveries rising from 65% to 91% in 2026, though management says 97% is the target level needed to strengthen revenue.
To improve service quality and efficiency, Correios launched a selection process for regional superintendents and introduced cost-reduction targets for its units totaling R$1 billion annually.
Management is also evaluating mechanisms to reward employees who meet performance targets, though current financial constraints limit the possibility of direct monetary incentives. Instead, meeting those targets can accelerate employees’ career progression within the company.
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