Royal Mail to Reduce 2,500 Head Office Jobs by 2027

Royal Mail has announced plans to cut 2,500 head office and supporting roles by the end of 2027, representing about 2% of its 131,000-strong workforce. The company stated that frontline postal workers, including posties and drivers, will not be affected by the proposed cuts. The workforce reduction aims to improve efficiency and will be achieved through voluntary redundancies and employees choosing to leave the company. Royal Mail is in formal consultation with its unions, the Communication Workers Union and Unite CMA, regarding these plans. Chief Executive Alistair Cochrane stated, "These proposed changes remove duplication and allow us to invest further in the service we deliver for our customers." Royal Mail has struggled to meet delivery targets for first and second-class mail and has faced fines from the regulator for not meeting these targets. In the year ending March, just over 75% of first-class letters were delivered on time, falling short of the 93% target. The company has noted a decline in letter-sending and has called for reform of its Universal Service Obligation (USO), which mandates delivery six days a week to every address in the UK. Royal Mail has faced criticism from politicians and the public regarding its delivery speed, with over 100 MPs contacting regulator Ofcom and the business secretary about service issues. The firm plans to invest £500 million over the next five years as part of its improvement strategy. Royal Mail is owned by Czech billionaire Daniel Kretinsky's EP Group, which acquired the company following shareholder approval in April of the previous year. Kretinsky has stated he will maintain the requirement for six-day letter delivery while managing the service.