Australia Post is potentially facing billions of dollars in losses, with 900 jobs set to be axed within days.

Fairfax Media reports one of the country’s oldest companies is forecast to go heavily into the red if it continues to offer its failing letters business.

Its 32,000 staff are expected to be informed of the cuts as early as Tuesday, with most positions to go in Sydney and Melbourne.

Fairfax says everyday home delivery of standard-priced mail is expected to be another casualty, with the service to be cut back to two or three times a week providing approval can be sought to change government regulations.

“Australia Post has made it very clear that it is confronting dramatic change due to the impact of declining revenues in our letters service,” according to an Australia Post spokesman.

What a shocker. And they’re lobbying for a 3 day a week postal service RT @theage: Australia Post to axe 900 jobs http://t.co/8IXjOvuLLT

— Katy (@LadyWriterLDN) June 7, 2014

The future of Australia Post will be off the beaten track http://t.co/crpoWa0lHb

— PNCAU (@PNCAU) June 7, 2014

“It is already responding to those changes and is a much leaner organisation than it was three years ago. The net impact of these and other changes we need to make is still being worked through but supporting our people through these changes remains our top priority.”

The paper says private modelling indicates Australia Post will lose $7.1 billion through to 2022-23 if the business continues on its present path.