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Royal Mail is set to cut 700 jobs as part of a cost-cutting measure that it hopes will save £40 million every year.
A total of 700 managers are set to lose their jobs as the service begins a push to reduce middle management, cut bureaucracy, and reduce costs.
Making the 700 managers redundant would save around £40 million every year, according to the Royal Mail – that’s around £57,142 per manager.
Around £30 million of that would come between April 2022 and April 2023, reports The Mirror.
However, the one-off cost of the redundancies will be £70 million – a payment that Royal Mail will make before April this year.
According to a statement this morning, Royal Mail delivered 11 per cent fewer parcels in 2021 compared to 2020, and three per cent fewer letters.
This is due to lockdowns affecting normal business, the service said.
Speaking about the job losses, Royal Mail said: “Our successful ‘Day in the Life of’ initiative has already reduced administration for frontline managers and allowed us to repurpose over one million annualised hours so that managers can spend more time focusing on their teams and customers.
“As a next step, subject to consultation, we intend to further simplify and streamline our operational structures to ensure an improved focus on local performance, and devolve more accountability and flexibility to frontline operational managers.”
Royal Mail chairman Keith Williams said: “The past few months have demonstrated that the challenge for Royal Mail is to improve both quality and efficiency.
“Looking forwards, the delivery of our transformation and modernisation plans remain incredibly important in light of the fast‐paced change we are seeing and ongoing inflationary pressures.”
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