Royal Mail stated that it could have to reduce up to 10,000 jobs by August next year. This was due to strike action by workers and the continuing decline in its core business.
The company announced that thousands of jobs would be lost due to the disruption and damage caused by industrial action and declining parcel volumes in an unscheduled trading update. This came just 24 hours after Royal Mail workers staged their 24-hour strike.
Royal Mail stated that it expected to lose about £350m annually in the year ending March 2023. If disruptions in its delivery services cause disruptions, Royal Mail said this could increase to £450m.
According to the company, it must reduce its delivery and processing staff by up to 6,000 by March. It also plans to seek a total reduction of 10,000 equivalent full-time roles by August. The company employs approximately 140,000 people.
The company stated that it would consult on rightsizing the business to address the effects of industrial action, delays in delivering productivity improvements and lower parcel volume. “We will seek to achieve FTE rightsizing wherever possible through reductions in overtime and temporary staff as well as natural attrition.
Royal Mail stated that eight days have passed without industrial action or were notified by the Communications Workers Union to Royal Mail. There are 16 additional days of possible strike action in November and December.
The company stated that if these occur, the loss for the entire year would rise materially and may necessitate further operational reform and headcount reduction. We will continue to push for talks at Acas with CWU. These negotiations must be held in a time-bound manner as further strikes could cause further disruptions to the business.
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