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Dozens of Australia Post offices could close in metropolitan areas as the service deals with the fallout from the pandemic and record rain.
About 30 offices of the 4000 branches could be closed but Australia Post has not made any final decisions and says staff whose branches close will be moved to nearby corporate offices.
"The pandemic and the rapid growth in the use of online services has resulted in a significant decline in customer visits to most post offices," a spokeswoman said.
"There are a small number of primarily metropolitan post offices with very low and declining foot traffic, expiring leases or building damage that are currently under review."
The shift to working from home has led to visits at some branches dropping to as low as 100 a day.
This year's record rainfall, which has caused widespread damage across the country, has also damaged post offices in metropolitan areas.
No regional or rural branches are understood to be facing closure.
Australia Post was committed to providing a "sustainable postal service" for decades to come, the spokeswoman said.
The government-owned business reported a boost in revenue in the first half of 2021/22 on the back of growth in its parcel delivery services.
The organisation has been grappling with the switch to online shopping and the reduction in traditional services such as delivering letters.