Royal Mail to slash 2,000 jobs after failing to adapt to increased parcel demand

Royal Mail has announced plans to cut thousands of jobs after struggling to meet growing demand for parcel delivery.

The firm has announced that around 2,000 jobs will be affected by a management restructure, part of a three point plan to save costs and turn performance around.

The company, which announced a 13.6 per cent drop in profits for the year ending March 2020, has struggled to adapt to a reduced number of letters and increased demand for parcel delivery - which it said has been exacerbated by the COVID-19 crisis.

Keith Williams, interim executive chair, Royal Mail Group, commented: “In recent years, our UK business has not adapted quickly enough to the changes in our marketplace of more parcels and fewer letters. COVID-19 has accelerated those trends, presenting additional challenges.

“We’re taking immediate action on costs, which will result in a £130 million saving in people costs next year and flat non-people costs, along with a reduction of around £300 million in capex across the Group over the next two years, to address the immediate impact of COVID-19.

“Regrettably, we are also proposing a management restructure impacting around 2,000 roles. We are committed to conducting the upcoming consultation process carefully and sensitively.”