Royal Mail Announces 2,500 Job Cuts Amid Major Restructuring
Delivery changes and missed targets prompt union warnings of organisational collapse.
Callum Smith
Royal Mail plans to cut up to 2,500 jobs as part of a significant operational review.
The company's restructuring effort includes shifting second-class post to alternate weekdays and eliminating Saturday deliveries. This new model has already been implemented in nearly 1,100 locations across the UK.
The company missed its delivery targets in the first quarter of the year. Only 85% of first-class mail and 91.4% of second-class mail arrived within three working days. Royal Mail claims its first-class service quality has improved by 9%, despite falling short of regulator-set targets.
We have now deployed our new delivery model in around 90% of delivery offices and are starting to see the benefits for customers. First-class quality of service has improved by 9%, and offices operating under the new delivery model are delivering to around 95% of addresses each day on average, compared with 88% before rollout began.
Alistair Cochrane stated, "We have now deployed our new delivery model in around 90% of delivery offices and are starting to see the benefits for customers." He added, "First-class quality of service has improved by 9%, and offices operating under the new delivery model are delivering to around 95% of addresses each day on average, compared with 88% before rollout began."
Implementation across the final 107 UK offices will now be held back until 11 January. This delay allows staff to focus on the peak festive season. The business had expected to expand the new model across all 1,200 delivery offices by Christmas.
The Communication Workers Union claims the organisation is "on the brink of collapse." Andy Burnham stated, "They need to bring forward a plan to restore service standards to the level they need to be at. They need to do it quickly or we will consider further measures."
They need to bring forward a plan to restore service standards to the level they need to be at. They need to do it quickly or we will consider further measures.
International Distribution Services, Royal Mail's parent company, was acquired last year by Daniel Kretinsky. Alistair Cochrane affirmed, "There is still more to do, but the progress we are seeing gives us confidence that the new delivery model will continue to ensure more reliable, efficient and sustainable deliveries for our customers."