The Post Office is set to offload 108 of its directly owned branches under new plans, including three in Northern Ireland.
The move could put over 1,000 jobs at risk with the company saying that it plans to hand over the branches to franchisees by the autumn.
It is understood that the Post Office hopes these branches will remain operating as part of the Post Office group, but some may close as a result of the plans.
Read more: More NI postmasters have convictions quashed following Post Office Horizon scandal
Read more: Northern Ireland Horizon scandal victims get £1.8 million
The Northern Irish branches that will be impacted by the move are Bridge Street, Belfast, Custom House Street, Derry and Frances Street, Newtownards.
Post Office chairman Nigel Railton said: “Moving to a fully franchised network is one part of enabling the Post Office to deliver a New Deal for Postmasters, helping to create a long-term, sustainable future for the Post Office.
“By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40 million worth of savings that will enable us to uplift postmasters’ remuneration by up to 10%.”
The Post Office said the plan was launched by its board following consultation with unions and reviewing options with its postmaster consultative council.
The organisation stressed it is committed to meeting the current requirement to have a minimum of 11,500 branches across the UK. It has said the plan, which is subject to Government funding, will help it to increase postmaster remuneration by an extra £250 million a year by 2030.
However Unions have expressed concerns about the plans saying that it will see a further reduced service and that it is the "full privatisation of the Post Office via the back door."
Dave Ward, general secretary of the CWU (Communication Workers Union), said: “The Post Office’s claim that these community services will be maintained by their failed franchising model is laughable to anyone who has seen their local Post Office services reduced to the back of a shop.
“The sell-off of WH Smith last week shows just how fragile and ill thought-out this model is.
“This is the full privatisation of the Post Office via the back door.”
For all the latest news, visit the Belfast Live homepage here and sign up to our daily newsletter here.