Royal Mail has announced plans to cut 2,500 head office and support function jobs by the end of 2027, representing about 2% of its 131,000-strong workforce. The proposed restructuring will not affect frontline postal workers, meaning local posties will not be impacted.
Significant transformation
The company said it was undergoing a “significant transformation” as it implements universal service reform and adapts to a rapidly changing market. Letter volumes have declined by more than 70% since their peak, while customer demand for faster and more convenient parcel delivery services continues to grow, it said.
A statement on the job losses said: “As part of its transformation programme, Royal Mail is simplifying processes and functions across the business and today announced proposals for an organisational review of head office and support functions.”
CEO statement
Alistair Cochrane, chief executive officer of Royal Mail, 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.
“These proposed changes remove duplication and allow us to invest further in the service we deliver for our customers.
“We are committed to treating everyone fairly and respectfully throughout this process, working closely with our trade unions.
“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.”
Universal service reform
Fewer people are sending letters, and the company has repeatedly said that its Universal Service Obligation (USO), a legal requirement to deliver letters six days a week to every address in the UK, is outdated and needs reform.
Royal Mail, which is separate from the Post Office, has faced criticism in the past over the slowness of its letter delivery. This week, Northumberland MP David Smith called on Royal Mail to sort out issues that have led to significant delays for residents.
The job cuts will be carried out through voluntary redundancies and people choosing to leave the company. It said it was in formal consultation with its unions, the Communication Workers Union and Unite CMA, over its plans.
