Royal Mail losing £1m a day as it threatens union with split

Royal Mail has warned union bosses preparing to strike that the business could be split in two as its British arm loses £1m a day.

The former FTSE 100 company warned the Communication Workers Union (CWU), whose 115,000 members yesterday voted in favour of strike action, that its UK and overseas arms would be separated unless “significant operational change” is achieved.

Keith Williams, Royal Mail chairman, said: “The pandemic boom in parcel volumes bolstered by the delivery of test kits and parcels is over.

“Royal Mail is currently losing one million pounds per day and the efficiency improvements which are needed for long term success have stalled.”

The foundations for a split of the 500-year-old business are being put in place, with parent company Royal Mail plc to be renamed International Distributions Services plc.

Since its privatisation and float on the London Stock Exchange in 2013, Royal Mail has lost ground on tech-savvy rivals such as Amazon.