Royal Mail plans up to 2,500 job cuts in organisational overhaul

(Sharecast News) - Royal Mail said on Wednesday that it plans to cut up to 2,500 head office and support-function roles by the end of 2027 as part of a wider organisational overhaul aimed at reducing costs and simplifying the business. The proposed cuts represent less than 2% of Royal Mail's workforce of more than 131,000 people and would be achieved through natural attrition and a voluntary redundancy programme, with no compulsory redundancies planned.

The postal operator said frontline delivery and processing roles, including posties and drivers, would not be affected.

Royal Mail, part of International Distributions Services, said the review was designed to improve efficiency, speed up decision-making and focus resources on areas that would have the biggest impact on its transformation and customer service.

It has begun formal consultations with the Communication Workers Union and Unite CMA.

The move comes as Royal Mail adapts to a "rapidly-changing" postal market and implements reforms to the Universal Service. Letter volumes have fallen by more than 70% from their peak, while demand for faster and more convenient parcel delivery has continued to grow.

Chief executive Alistair Cochrane said the company had been working to reduce costs and simplify processes in an "very competitive market".

"These proposed changes remove duplication and allow us to invest further in the service we deliver for our customers," he said.

Cochrane added that the changes would be difficult but were "an important part of building a stronger, simpler and future-ready Royal Mail".