Big cutbacks announced at Royal Mail (printweek.com)

Alongside its year-end results the postal operator’s interim executive chair, Keith Williams, outlined a new three-step plan to get the business back on track.

“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,” he said.

Some 2,000 management jobs will go, more than 20% of the current total of 9,700 management positions. Royal Mail said the biggest reductions would be in “senior executive roles and non-operational functions”. The restructure will cost about £150m, and will result in annual savings of £130m.

Capex will be reduced by £300m across the group over the next two years, with £250m of the cutbacks affecting the UK.

There will be no dividend, and no annual bonus for executives in 2019-2020.

Unite described the news as “devastating” and said it was the result of “poor decision making in the past by Royal Mail’s top bosses”.

Separately, Royal Mail continues to be in dispute with the CWU.
more at source: https://www.printweek.com/news/article/big-cutbacks-announced-at-royal-mail