Royal Mail has announced plans to cut 2,500 head office and support jobs by the end of 2027 as the British postal service battles falling letter volumes, rising competition and mounting pressure to improve delivery performance.
The proposed cuts represent about two per cent of the company’s 131,000-strong workforce. However, frontline postal workers, including posties and drivers, will not be affected by the restructuring.
Royal Mail said the reductions would be achieved through voluntary redundancies and employees choosing to leave the company, rather than compulsory job losses.
Chief executive Alistair Cochrane said the changes were designed to improve efficiency and free up resources for investment in services.
“These proposed changes remove duplication and allow us to invest further in the service we deliver for our customers,” Cochrane said.
“The proposed changes will not be easy, but they are an important part of building a stronger, simpler and future-ready Royal Mail for our customers and colleagues.”
Royal Mail Begins Talks With Unions
The company said it had begun formal consultations with its unions, including the Communication Workers’ Union (CWU) and Unite CMA, over the proposed restructuring.
However, the CWU criticised the plans, arguing that the company was demoralising its workforce while failing to provide an adequate service to customers.
“We urge the government to confront the reality of a collapsing Royal Mail and intervene to save this national institution,” the union’s deputy general secretary, Martin Walsh, told the BBC.
Delivery Delays Put Royal Mail Under Pressure
Royal Mail has faced increasing criticism over delays to letter deliveries and its failure to meet regulatory performance targets.
Just over 75 per cent of first-class letters were delivered on time in the year to the end of March, significantly below the company’s target of 93 per cent.
The decline in letter volumes has also intensified calls to reform the Universal Service Obligation, which legally requires Royal Mail to deliver letters six days a week to every address in the United Kingdom.
Royal Mail has repeatedly argued that the obligation is outdated as fewer people rely on traditional letters.
The service has also come under pressure from politicians and members of the public over delivery delays. More than 100 MPs have written to communications regulator Ofcom and the business secretary, seeking action over complaints from constituents about poor service.
£500m Investment Planned Despite Job Cuts
Despite the planned workforce reduction, Royal Mail said it would invest £500 million over the next five years as part of an improvement programme.
The postal service is now owned by EP Group, controlled by Czech billionaire Daniel Kretinsky, following a takeover approved by shareholders in April last year.
Kretinsky has previously said he would not abandon Royal Mail’s obligation to deliver letters throughout the UK six days a week for as long as he remains in control of the service.
The planned job cuts come as Royal Mail seeks to reduce costs and adapt its operations to changing communication habits while facing growing demands to improve delivery reliability.
