Key facts
- Royal Mail plans to cut up to 2,500 jobs by the end of 2027.
- The job cuts will primarily affect head office and support roles, not frontline postal workers.
- The reductions will be achieved through voluntary redundancies and natural attrition.
- Letter delivery volumes have fallen by more than 70% since their peak.
- Royal Mail has been fined £37 million since 2023 for missing delivery targets.
- The company is owned by Daniel Kretinsky's EP Group.
Royal Mail announced plans to cut up to 2,500 jobs by the end of 2027 as part of a significant business restructure driven by declining letter volumes and increased competition. The job reductions will primarily affect head office and support function roles, with frontline postal workers and drivers protected from the proposed changes.
The company stated that the workforce reduction, designed to improve efficiency, will be achieved through voluntary redundancies and natural attrition. Royal Mail is currently in formal consultation with its unions, the Communication Workers Union and Unite CMA, over the plans. Chief executive Alistair Cochrane said the proposed changes aim to remove duplication and allow for further investment in customer service.
Royal Mail has faced challenges in meeting its delivery targets, leading to fines from regulator Ofcom. The company has repeatedly argued that its Universal Service Obligation, requiring six-day-a-week letter delivery across the UK, is outdated. The postal service, owned by Daniel Kretinsky's EP Group, is investing £500 million over the next five years as part of its improvement plan.