Royal Mail has announced an organisational review that could cost up to 2,500 employees their jobs. The company employs around 131,000 people in total.
The losses are expected at the head office on Farringdon Road in London and in support function roles, by the end of 2027. The company said the changes are subject to consultation.
It anticipates achieving them through natural attrition and a voluntary redundancy programme, with no compulsory redundancies. It said there would be no reductions in operational frontline roles in delivery and processing, including posties and drivers.
Royal Mail said it is undergoing a “significant transformation” as it implements universal service reform. It is adapting to a rapidly changing market in which letter volumes have declined sharply and parcel demand has surged.
Chief executive Alistair Cochrane said the company had been working hard to reduce costs and simplify processes across all areas of the business. He said the proposed changes remove duplication and allow it to invest further in the service it delivers for customers. He also addressed the difficulty of the plan.
The proposed changes will not be easy, but they are an important part of building a stronger, simpler and future-ready Royal Mail for our customers and colleagues.
Alistair Cochrane, Royal Mail
The cuts are the first main organisational shift under the ownership of Czech billionaire Daniel Kretinsky’s EP Group. It paid almost £3.6bn for Royal Mail’s parent firm, overcoming government and union concerns in return for a series of pledges, including to the universal service obligation.
The industry regulator later allowed the six-days-a-week delivery commitment to be relaxed for second-class letters.
Union relations with management remain strained after a series of bitter disputes and strikes under the old regime. The Communication Workers Union has long accused the company of managed decline, in a market that, it says, Ofcom has allowed to undercut the terms and conditions of its 100,000 Royal Mail members.
Mr Cochrane said the company is committed to treating everyone fairly and respectfully throughout this process, working closely with its trade unions.
