Royal Mail has announced plans to cut 2,500 head office and other supporting roles by the end of 2027. The postal service firm stated the move is in response to competition and a fall in demand for letter deliveries.
These proposed reductions account for approximately 2% of Royal Mail's 131,000-strong workforce. The company aims to achieve these cuts through voluntary redundancies and staff departures, with frontline postal workers not included in the restructuring.
Chief executive Alistair Cochrane stated the changes are designed to remove duplication and allow for further investment in customer service. Royal Mail is currently in formal consultation with unions, the Communication Workers Union (CWU) and Unite CMA, regarding the plans.
The CWU described the announcement as "further evidence of a company that is demoralising staff and failing to deliver for customers and the wider community." Unite also commented that the cuts would not improve Royal Mail's service quality.
Royal Mail has faced challenges in meeting delivery targets for first and second class post and has been fined by the regulator for missing targets in recent years. The company has also stated that its Universal Service Obligation, which requires six-day-a-week letter delivery, is outdated.