Royal Mail to cut 2,000 management jobs

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Royal Mail Group is expecting to cut around 2,000 management roles as part of a major restructure.

Interim executive chair Kevin Williams said the company had not adapted quickly enough to the shift towards a higher volume of parcels and fewer letters, accelerated by the coronavirus crisis.

Williams said the management restructure was “regrettable”.

“We are committed to conducting the upcoming consultation process carefully and sensitively. We will work closely with our managers and their representatives during this difficult period, including supporting them as they transition into the next stage in their careers,” he said.

The group, which includes Royal Mail, Parcelforce and international delivery firm GLS, employs 9,700 people at management level in the UK.

The largest headcount reductions will be seen in senior executive roles and back office functions.

The restructure was expected to cost around £150m and is hoped will deliver an annual cost reduction of £130m in 2021-22.

It said it wanted to discuss the need for change, future pay structures and ongoing industrial disputes with the Communication Workers Union and added that any pay increases would be funded by any productivity improvements cumulatively to March 2022.

The union had not commented at the time of publication.

Williams paid tribute to Royal Mail staff for their dedication and hard work during the pandemic: “Our UK postmen and women are playing a crucial role in mitigating the impact of the Covid-19 pandemic. They are key workers on the frontline.”

Royal Mail is the latest company to announce redundancies because of the affect the pandemic has had. Yesterday airport ground handling company Swissport said it expected to cut 4,500 jobs in the UK, while Pret a Manger has warned of mass redundancies because of reduced footfall.

Earlier this month the Office for National Statistics estimated that in May there were 600,000 fewer people on payrolls than in March.

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