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Royal Mail says it cannot yet clarify how Northampton’s mail centre will be affected by a cost-cutting plan that will make around 2,000 people redundant.
The company announced today (June 25) that it needs to “urgently” save over £250m in the wake of tumbling profits from the Covid-19 crisis.
It includes a plan to make around 2,000 workers at management level and will mainly fall on “back-office” jobs such as finance, IT and commercial work.
Today, Royal Mail said it is not yet able to give a regional breakdown and cannot say how it will affect the South Midlands Mail Centre in Northampton – which is the largest of its kind in the UK and employs thousands of people.
However, the jobs of frontline postal staff that deliver to people’s doors are unlikely to be affected.
The cuts alone aim to save about £130m in costs from next year.
In an open letter to staff today, interim executive chair Keith Williams wrote that even before the year started they were forecast to make an operating lost of up to £350m.
Mr Williams wrote: “Even before we were hit by Covid-19, we knew we needed to change.
“The postmen and women I meet all tell me a simple truth: the job is not the same as even a few short years ago.
“The unprecedented nature of the pandemic means that the outlook is challenging and volatile… We have already seen a 33 per cent decline in letters in the last two months. If we end up seeing letter volumes decline by more than 20 per cent this year, that’s over £600 million of revenue lost.
“None of this is easy, but it is essential if we are to secure Royal Mail for the benefit of the country, and for as many of our employees as possible.”
Royal Mail says it is beginning talks with union reps immediately.
The Communications Workers Union has been contacted for a comment.
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