Royal Mail has announced that they are planning to axe 1,600 jobs as part of a cost-cutting drive.
The job cuts will mostly involve operational and head office managerial positions, with no impact on frontline employees such as postmen, and the company hopes that they will save around £50 million.
The company also said that they will be creating 300 new roles, leaving the net figure of job reductions at the company at 1,300.
Moya Greene, Chief Executive Officer, Royal Mail plc, said:
“We are continuously improving our efficiency, whilst maintaining our high Title: Quality of Service Description: Measurement of Royal Mail’s performance against the service targets set out in its licence. Quality of Service. We need to do so in order to effectively compete in the letters and parcels markets. This is the best way to ensure the continued delivery of the Title: Universal Service Description: Postal products and associated minimum service standards that must be available to all addresses in the UK. Universal Service and the good quality jobs we provide for our people.”
Royal Mail have said that they have begun a formal consultation with Unite and CWU unions over the job cuts and efficiency savings. However, today the unions threatened strike action if there are any compulsory redundancies, causing share in the company to tumble.
Brian Scott, Unite officer for Royal Mail said:
“First the government sells-off Royal Mail on the cheap and now the newly privatised service is ruthlessly sacrificing jobs. We do not believe that it’s a coincidence that this announcement has been made just before the company prepares to announce its first full set of accounts since privatisation. It’s more proof that Royal Mail’s primary reason for existing is now about making profits rather than serving the nation”
CWU deputy general secretary Dave Ward said:
“Royal Mail has confirmed to us that there will be no compulsory redundancies of permanent employees and that today’s announcement has no impact on CWU operational frontline grades. However, we will fight to protect jobs and do all we can to minimise the impact of job losses on CWU grades.”
