Monday, February 26

Royal Mail to cut 2000 jobs



Royal Mail is to cut 2,000 jobs in a management restructuring prompted by the additional challenges of the coronavirus pandemic.

The cuts will reduce the number of UK management roles in the business, currently totalling 9,700, by around a fifth. They come just over a month after Royal Mail’s chief executive Rico Back quit with less than two years in the role.

The cuts are intended to deliver cost savings of £130m a year as the business struggles to adapt to changes in demand accelerated by the coronavirus crisis – with more parcels but fewer letters being delivered.

Keith Williams, Royal Mail’s interim executive chairman, said: In recent years, our UK business has not adapted quickly enough to the changes in our marketplace of more parcels and fewer letters. COVID-19 has accelerated those trends, presenting additional challenges.

Royal Mail said they would mainly affect central and support roles rather than field operations as it seeks to become a leaner, more focused company.

The number of senior managers in the business is being cut by half. Royal Mail will also cut capital investment in the business over the next two years by £300m.