Gwenan White | Trainee Solicitor

Royal Mail to axe up to 10,000 jobs as losses rise

Royal Mail has announced plans to cut 10,000 jobs by next August, blaming ongoing strike action and rising losses at the business.

The postal company said it will begin notifying workers of its plan, which includes up to 6,000 redundancies. Apart from the redundancies, the firm will cut roles through natural attrition, for example by not replacing workers who leave.

Royal Mail also said it expects its full-year losses to hit £350m.

It said this included “the direct impact of eight days of industrial action” as well as lower volumes of parcels being posted, but the firm warned that losses could reach as much as £450m “if customers move volume away for longer periods” following strike action.

Royal Mail workers, who are members of the Communication Workers Union (CWU), began a fresh round of strikes this week over pay and conditions which will include 19 days of industrial action, including Black Friday.

The next strike date is scheduled for 25 October.

The company currently employs 140,000 people. It plans to cut between 5,000 and 6,000 jobs through redundancies. Headcount will be scaled back by a further 4,000 through not replacing people when they leave, cutting temporary staff and reducing overtime.

CWU members are striking over a pay deal Royal Mail offered earlier this year. This is made up of a 2% wage rise. As well as an additional 3.5% increase dependent on workers agreeing to certain conditions such as mandatory working on Sunday to deliver parcels.

Gwenan White

Gwenan White

Employment Law Team

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