Royal Mail says it's preparing to trim as many as 2,500 positions by the close of next year to get a better handle on expenses. The roles at risk sit in head office and support functions, and the company says departures will come through natural attrition and voluntary redundancies. Employees who deliver letters and parcels are not included.
The company is pushing ahead with universal service reform while dealing with a slump in letter volumes. Chief Executive Officer Alistair Cochrane said, "We have been working hard to reduce costs and simplify processes across all areas of the business as we transform to win in a very competitive market." He said the proposed changes would cut duplication and allow more investment in service.
Job cuts at a national carrier say something about the whole delivery economy. Market Briefs covers logistics free every weekday.
A little more than a year has passed since Czech billionaire Daniel Kretinsky finalized a £3.6 billion ($4.8 billion) deal to buy the parent of Royal Mail, an institution that dates back to 1516 under King Henry VIII. Unite criticized management's approach, arguing that deeper issues remain unsolved. "Without urgent action, this will happen again," said Unite general secretary Sharon Graham. "More jobs will be lost, employment standards will continue to fall and customers will continue to be let down. The answer cannot simply be another round of job cuts."
Royal Mail employs more than 131,000 people, and frontline delivery roles are not part of this round of reductions. The bigger picture is straightforward: legacy brands are still navigating how to serve today's customers while keeping costs in check, and cost cuts often show up before revenue growth does.
Letter volumes are falling faster than parcel growth replaces them. Join Market Briefs free and follow the shift.
