Challenging times

Royal Mail boss blames slow change for 2,000 job cuts

Royal Mail letters post box

Slow post: changes coming to mail business

Royal Mail is to cut 2,000 jobs in a management restructuring aimed at addressing “long-standing challenges”.

The staff reductions will be part of a plan to take £430 million of costs out of the business over the next two years.

Keith Williams, 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.”

His comments came in final results showing pre tax profit fell to £275m from £398m last time. Operating profit was down by 13.6% from £411m to £325m.

Mr Williams said the company was taking “immediate action on costs”, which will result in a £130m saving in people costs next year and flat non-people costs, along with a reduction of around £300m in capex across the group over the next two years, to address the immediate impact of COVID-19. 

“Regrettably, we are also proposing a management restructure impacting around 2,000 roles,” he said.

The company will be accelerating the pace of operational change in the UK to address long-standing challenges and be sustainable for the long term.

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