An Post says it will make a loss of €47m this year, more than treble what it forecast in its budget.
The company is forecasting further losses of €39m in 2004, but says it hopes a new strategy plan will help it to break even by 2005.
An Post has blamed the losses on the weakening economy and a delay in the implementation of cost saving automation projects.
The Minister for Communications Dermot Ahern has said he wants a recovery plan from the company within four weeks, saying that budgetary information submitted to his officials in the past appeared to be seriously inaccurate.
An Post says Department of Communications officials were kept up to date as the company's financial position deteriorated over the year.
As part of its new strategy An Post is targeting a reduction in staff numbers of up to 1,500, an increase on previously signalled job reductions of around 1,000.
