Royal Mail set to axe 1,600 jobs
Royal Mail has outlined proposals to cut the number of jobs at the company by 1,600 as part of its continued efficiency programme.
However, Royal Mail hopes to create 300 new roles taking net reduction of jobs to 1,300. The majority of those impacted work in the company's operational and managerial departments.
The programme is expected to save the company around £50m a year, of which £25 will be realised in 2014-15. Royal Mail will be commencing a formal consultation with the Unite and Communication Workers Union (CWU) on Tuesday.
Moya Greene, chief executive officer, Royal Mail, said:
We are continuously improving our efficiency, whilst maintaining our high Quality of Service. We need to do so in order to effectively compete in the letters and parcels markets. This is the best way to ensure the continued delivery of the Universal Service and the good quality jobs we provide for our people.
Royal Mail said the total transformation costs for the year will be roughly £230m, compared to previous forecasts of £160m.
Since 2003 close to 50,000 employees have left Royal Mail Group.