Royal Mail plans to eliminate 2,500 head office and support roles by the end of 2027 as the United Kingdom postal service battles declining demand for letters and increasing competition.
The planned reduction represents about two per cent of Royal Mail’s 131,000-strong workforce.
However, frontline workers, including posties and drivers, are excluded from the restructuring.
The company said the job losses, aimed at improving efficiency, would be achieved through voluntary redundancies and employees choosing to leave the organisation.
Royal Mail Chief Executive, Alistair Cochrane, said the changes would help streamline the company and allow it to improve its services.
“These proposed changes remove duplication and allow us to invest further in the service we deliver for our customers,” Cochrane said.
He added that the job cuts “will not be easy, but they are an important part of building a stronger, simpler and future-ready Royal Mail for our customers and colleagues”.
Royal Mail said it was currently consulting formally with the Communication Workers Union and Unite CMA over the proposed changes.
The CWU criticised the plan, saying that despite assurances there would be no compulsory redundancies, the announcement showed that the company was struggling.
“This is further evidence of a company that is demoralising staff and failing to deliver for customers and the wider community,” deputy general secretary Martin Walsh told the BBC.
“We urge the government to confront the reality of a collapsing Royal Mail and intervene to save this national institution,” he added.
Royal Mail has faced growing criticism over its delivery performance, including failing to meet targets for first and second-class mail.
The company has also been fined by the regulator for missing delivery targets in recent years.
Only slightly more than 75 per cent of first-class letters were delivered on time in the year ending in March, well below the 93 per cent target.
The postal operator has repeatedly called for reforms to the Universal Service Obligation, which legally requires it to deliver letters six days a week to every address in the UK, arguing that the system no longer reflects declining letter volumes.
Royal Mail has also faced criticism from politicians and members of the public over delays.
More than 100 MPs have written to regulator Ofcom and the business secretary this year, urging action over complaints about poor service in their constituencies.
The company said it would invest £500m over the next five years as part of an improvement programme.
Royal Mail is owned by Czech billionaire Daniel Kretinsky’s EP Group, following his takeover of the company, which was approved by shareholders in April last year.
