Businessupdated 1h ago3 min read
Royal Mail Plans To Cut Up To 2,500 Head Office Jobs By End-2027
Royal Mail plans to cut up to 2,500 head office and support roles by end-2027 Cuts target head office and support functions, not frontline postal workers
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Royal Mail job cuts
Royal Mail announced plans to cut up to 2,500 head office and support jobs by the end of 2027 as it restructures amid competition and falling demand for letter deliveries. Royal Mail said the cuts would represent about 2% of its 131,000-strong workforce, while it said frontline postal workers including posties and drivers would not be affected by the proposed restructuring. Royal Mail said it expects to achieve the workforce reduction through voluntary redundancies and people choosing to leave the company, and it said it was in formal consultation with its unions, the Communication Workers Union (CWU) and Unite CMA.
Royal Mail chief executive Alistair Cochrane said, "These proposed changes remove duplication and allow us to invest further in the service we deliver for our customers," as the company linked the review to universal service reform and a decline in letter volumes of more than 70% since their peak. Royal Mail also said it was investing £500m over the next five years as part of its improvement plan, while the company said its Universal Service Obligation is outdated and needs reform.
Unions challenge impact
The Communication Workers Union said Royal Mail’s reassurances that there would be no compulsory redundancies were not enough, and it called the announcement "further evidence of a company that is demoralising staff and failing to deliver for customers and the wider community". Martin Walsh, deputy general secretary of the CWU, urged the government to intervene, saying, "We urge the government to confront the reality of a collapsing Royal Mail and intervene to save this national institution," as the union argued the proposals would still affect jobs in administration and revenue protection. Royal Mail said the organisational review would not reduce operational frontline roles in delivery and processing, including postmen and women and drivers, and it said the changes would be achieved through natural attrition and a voluntary redundancy programme.
Personnel Today said the company briefed the CWU and Unite CMA and that formal consultation was underway, while it also quoted Walsh saying the proposals would impact approximately 200 CWU-represented jobs in administration and revenue protection. Royal Mail said the review was designed to improve efficiency and speed up decision-making, and it said it was simplifying processes and functions across the business as it transformed to win in a competitive market.
Service targets and stakes
Royal Mail said the restructuring comes as it struggles to meet delivery targets for first and second class post, and it has been fined by the regulator for missing targets in recent years. The BBC said just over 75% of first class letters were delivered on time in the year to the end of March, far off its target of 93%, and it said more than 100 MPs had written to regulator Ofcom and the business secretary about the poor service. The Guardian said Royal Mail has been fined a total of £37m since 2023 for missing delivery targets set by Ofcom, and it said the job cuts would focus on head office and support function roles with the restructure to be completed by the end of next year.
The Guardian also said Royal Mail’s cuts would be achieved through "natural attrition" and a voluntary exit programme with no compulsory redundancies, while it said the cuts amount to less than 2% of Royal Mail’s workforce of more than 131,000. Royal Mail said it was owned by Czech billionaire Daniel Kretinsky’s EP Group, and it said Kretinsky has previously said he will not walk away from the requirement to deliver letters throughout the UK six days a week, as long as he is running the service.