Royal Mail shares have hit their lowest since the company went private, following a warning that annual profits would be lower than expected.
Shares fell 18% on Monday and another 8% on Tuesday, and the company lost around £1 billion in market value.
The Royal Mail attributed the decline to a greater slump in letter volumes than expected, which the company had earlier warned about due to the new GDPR regulations. There was a 7% fall in letter volumes where 4-6% had been predicted.
It also cited poor productivity performance that resulted in cost saving targets not being met, in part due to union negotiations regarding working conditions and technology.
Operating profits are now expected to be between £500-550 million, as opposed to £694 million last year.
In August, Royal Mail was fined a record £50 million by Ofcom for breaching competition law.
Source: Sky News