The Royal Mail Delivers More Bad News as it Cuts 2,000 Jobs while Heavy Losses Continue to Mount

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The Royal Mail will cut 2,000 jobs as the company tries desperately to significantly reduce its costs.

THE firm – whose revenues have been hit hard by coronavirus – has also announced plans to slash management roles in a bid to save costs of £130 million.

It said there has been an increasing trend of more parcels and fewer letters being sent, news of the cuts came a month after Royal Mail’s chief executive Rico Back left his role after less than two years. Keith Williams, the company’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.”

The job cuts will mainly fall on so-called ‘back-office’ roles, including finance, commercial, and IT. Royal Mail currently has about 9,700 managers, and the job losses will hit the most senior roles hardest, with half of them set to go. Frontline postal staff are unlikely to be affected because Royal Mail needs to preserve “quality of service,” a spokesman said.

The Royal Mail also warned it could take a revenues hit of up to £600 million for the year ahead if Britain suffers a deep and longer-lasting recession caused by the pandemic.

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Written by

Tony Winterburn

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