Royal Mail plans to slash 10,000 jobs by August 2023 amid rising losses, strike

Royal Mail has said that 10,000 jobs were going to be axed by August 2023 due to the ongoing worker strike and mounting losses. Currently, 6,000 people would be set aside per redundancy plans, and workers who leave would not be replaced.

The expected losses are around £350 million for a year, due to 8 days of inaction due to the strike and lower quantities of parcels being sent for deliveries. The Royal Mail was quick to add that losses would hit another £100 million if customers shifted their deliveries to others and the strike continued.




Royal Mail’s Chief Executive Simon Thompson said he would try to help all those who are going to be affected by the job cuts and avoid compulsory redundancies. The Royal Mail workers, under the Union of Communication Workers Union, have plans for a 19-day strike due to low pay, and plans are afoot to start new strikes from October 20. The workers contest that Royal Mail is grossly mismanaged, and instead of resolving issues, they are provoking strikes. This causes immense losses, and ultimately everyone loses.

Royal Mail has said if its workers keep up the strikes, there will be more job cuts. Royal Mail made a £235 million profit last year compared to the £70 million loss in the first half this year and a £219 million operating loss as a result.

FAQs

Who runs Royal mail?
Post Office Ltd Board

When did Royal Mail begin services?
July 31, 1635