PostNL to discontinue low-budget address delivery unit

AMSTERDAM Nov 14 (Reuters) - Former Dutch postal monopoly PostNL said it will close part of its budget mail delivery unit on Dec. 17, due to the current mail market and economic circumstances.

Post NL said on Monday current economic circumstances did not offer sufficient perspective to continue these activities profitably in the longer term.

Spokesman Marc Potma told Reuters 100 full-time jobs and 5,000 contract delivery jobs will be cut.

Budget unit Network VSP, which has been a subsidiary of Post NL since 2006, will continue delivering flyers and brochures, Potman said.

Post NL did not provide any financial detail.

As part of its overall restructuring, PostNL is axing 11,000 jobs. After seeing off legal challenges to reforms by its workers, the company is targeting savings of 50-60 million euros ($69-$82 million) for 2011. ($1 = 0.728 Euros) (Reporting By Roberta B. Cowan; Editing by Dan Lalor)