Royal Mail has announced plans to cut up to 2,500 head office and support roles by the end of 2027 as the postal operator looks to reduce costs and adapt to the continued decline in letter volumes.
The proposed reductions follow a review of the company’s corporate and support functions aimed at simplifying operations, removing duplication and improving efficiency.
The roles represent less than 2% of Royal Mail’s workforce of more than 131,000 employees.
Royal Mail said it intends to achieve the majority of the reductions through natural attrition and voluntary redundancies, with the company seeking to avoid compulsory redundancies where possible.
Frontline delivery and processing positions, including postmen and women, parcel delivery staff and drivers, are not included in the proposed changes.
The restructuring comes as Royal Mail continues to respond to significant changes across the UK postal market. Letter volumes have fallen by more than 70% from their peak, while demand has increasingly shifted towards faster and more flexible parcel delivery services.
The company is also facing intense competition within the parcel market as established logistics operators and newer delivery networks compete for growing e-commerce volumes.
Royal Mail has informed the Communication Workers Union (CWU) and Unite CMA of the proposals, with formal consultation now underway.
The postal operator has been owned by Czech billionaire Daniel Křetínský since the completion of his takeover in April 2025.
Alistair Cochrane, Chief Executive of Royal Mail, said the changes were part of efforts to create a leaner business capable of competing more effectively.
“We have been working hard to reduce costs and simplify processes across all areas of the business as we transform to win in a very competitive market.”
Cochrane said the proposed restructuring would remove duplication and allow Royal Mail to invest further in customer services.
He added that the company would work closely with trade unions during the consultation process and acknowledged that the changes would be difficult for employees affected.
The restructuring represents another stage in Royal Mail’s wider transformation as it attempts to shift its business towards parcels while managing the structural decline of traditional letter volumes.
