Royal Mail to cut up to 2,500 jobs in organisational review

Summarised from 8 outlets · Updated 7 Oct, 10:55 · Archive

Royal Mail announced plans to cut up to 2,500 head office and support function jobs by the end of 2027.

Royal Mail has announced an organisational review that will see up to 2,500 head office and support function jobs cut by the end of 2027. The cuts will affect around 2 per cent of the company's workforce of more than 130,000 employees.

The company attributed the restructure to a significant transformation needed as letter volumes have declined by more than 70 per cent since their peak, whilst customer demand for faster and more convenient parcel delivery services continues to grow. Royal Mail said it is undergoing this change as it adapts to a rapidly-changing market and implements universal service reform.

The postal service said it is committed to achieving the role reductions through natural attrition and voluntary redundancies, with no compulsory redundancies. The company has also pledged that there will be no reductions in operational frontline roles in delivery and processing, including posties and drivers.

Alistair Cochrane, chief executive 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."

The company said it will work closely with trade unions throughout the process. The changes are expected to come into force by the end of next year.

The Guardian reported that Royal Mail has been fined a total of £37m since 2023 for missing delivery targets set by Ofcom. The Independent noted that postal regulator Ofcom is continuing to investigate Royal Mail over its persistent failure to meet crucial delivery targets over the past year.

How it is being reported

• Royal Mail plans to cut 2,500 head office jobsThe postal service firm wants to cut the head office and other jobs by the end of 2027.BBC Business · 7 Oct, 10:55
• Royal Mail to cut up to 2,500 jobs amid restructure and fall in letter deliveriesPostal service says cuts will focus on on head office and ‘support function roles’ Business live – latest updates Royal Mail is to cut up to 2,500 jobs as the embattled company seeks to restructure its business amid intense competition and the continuing decline in letter deliveries. The postal service, which has been fined a total of £37m since 2023 for missing delivery targets set by Ofcom, said the job cuts would focus on head office and “support function roles” with the restructure to be completed by the end of next year. Continue reading...The Guardian · 7 Oct, 10:50
• Royal Mail to cut 2,500 jobs as part of sweeping organisational overhaulRoyal Mail is set to slash up to 2,500 jobs by the end of 2027This is Money · 7 Oct, 10:39
• Royal Mail announces plans to axe up to 2,500 jobs in major reviewPostal regulator Ofcom is investigating Royal Mail over its persistent failure to meet crucial delivery targetsThe Independent · 7 Oct, 10:37
• Royal Mail to cut up to 2,500 jobs as part of organisational reviewLetter volumes have declined by more than 70% since their peak, the company said.Evening Standard · 7 Oct, 10:34
• Royal Mail announces major shake-up with up to 2,500 jobs at riskUp to 2,500 jobs could be axed by the end of next year as Royal Mail has announced its plans for an organisational reviewThe Mirror · 7 Oct, 10:30
• Royal Mail announces plans for major overhaul as up to 2500 jobs at riskThe announcement was made on Wednesday morning.Daily Express · 7 Oct, 10:27
• Royal Mail to cut up to 2,500 jobsUp to 2,500 Royal Mail employees could lose their jobs under an 'organisational review', the company has announced.Sky News · 6 Oct, 13:49

In this story: Royal Mail · Alistair Cochrane · Ofcom

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