Royal Mail plan to axe 1,600 jobs

Royal Mail has recently announced they are cut up to 1,600 jobs within their company. The parcel delivery service has said that the majority of jobs lost will be those within operational and head office management positions. The decision to cut these types of jobs specifically is in the hope to prevent impact on delivery staff and frontline employees.

The axing of up to 1,600 managerial jobs will be an effort from Royal Mail to hopefully save them £50 million per year. However, from starting formal discussions with Unite and the Communication Workers Union with regards to the job losses, the cuts are anticipated to cost Royal Mail around £100 million in severance pay.

Chief Executive for Royal Mail, Moya Greene, has said the decision is about constantly striving to improve the company’s productivity: “We need to do so in order to effectively compete in the letters and parcels markets. This is the best way to ensure the continued delivery of the universal service and the good quality jobs we provide for our people.”

The company has said they are to approach and conduct their decision to reduce their workforce “carefully and sensitively.” Royal Mail has cut back on its workforce by eliminating 50,000 roles since 2003.