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Breakdown of expected savings by Canada Post under 5-stage plan to cut $900M

A Canada Post employee delivers mail in Ottawa December 11, 2013. Canada's postal service will phase out urban home delivery within five years and hike the cost of postage stamps to try to stem soaring losses, the post office said on Wednesday. REUTERS/Chris Wattie (CANADA - Tags: BUSINESS EMPLOYMENT) (REUTERS)

By The Canadian Press

Canada Post is hoping to offset rising costs and falling mail volumes with a five-stage plan that will help save up to $900 million a year.

Here is a breakdown of the savings Canada Post expects to achieve per year with its plan to eliminate door-to-door service and increase the price of stamps:

— Between $400 million and $500 million through the use of community mailboxes instead of home delivery.

— About $160 million to $200 million as a result of new stamp prices, which will increase by 35 per cent to 85 cents per stamp when purchased in a booklet, starting March 31.

— About $40 million to $50 million as it sets up more franchise postal outlets in stores across Canada.

— Between $100 million and $150 million from streamlining operations by focusing on faster computerized sorting equipment and a central sorting location that Canada Post says will lead to a more efficient flow of parcels and mail.

— An unspecified amount from the reduction of between 6,000 and 8,000 positions, mainly through attrition.