Royal Mail Announce Plans to Cut 10,000 Jobs

By Eve Kelly

Royal Mail have revealed today that they plan to cut up to 10,000 jobs by August 2023. The postal service has blamed this action on the growing loses they are having to accommodate for, impacted by the industrial action taken by workers combined with the general decreasing demand for the service.

A statement their parent company, International Distributions Services released today detailed how they aim to achieve short term cost effectiveness by gradually making 6000 employees redundant and potentially not replacing a further 4000 workers who are likely to leave and by cutting overtime and irradicating temporary contract roles.

IDS have projected that Royal Mail will have a full year’s loss of £350 million, a harsh comparison to the last financial year where they made a profit of £235 million.

Royal Mail’s chief executive Simon Thompson said: “This is a very sad day. I regret that we are announcing these job losses. We will do all we can to avoid compulsory redundancies and support everyone affected.”

Nearly 115,000 Royal Mail employees have been involved in the strikes that have been taking place, due to working conditions and the rate of pay. This news comes just a day after Royal Mail workers carried out their first 24 hour strike of the 16 planned over the next few months, with the next two taking place next week. Workers have called upon the union in this battle with the business.

For weeks now the Communication Workers Union (CWU) has been attempting to reach a deal with Royal Mail to satisfy wage expectations of workers. But this new blow where jobs are at risk means union action is imperative.

Michael Stockport, a postman from Horsham spoke to us about how the news has affected him; “I just can’t believe it, this news is so unexpected. We all know times are tough at the moment but to put this news on us in the middle of a cost of living crisis is simply amoral. I’m getting worried now because I don’t know how I’m going to be able to support my family for the future.”

Stockport adds “I know of lots of colleagues that have gone on strike, and I understand why they did it, but I don’t think that’s a good enough reason to take all our jobs off of all of us.”

Dependency on Royal mail as a postage provider has been falling since couriers, such as Hermes and Yodel, have been the more recent preferred choice for distributing retailers due to quicker shipments and cheaper out costs.

During the pandemic, with no other choice but to shop via ecommerce, Royal mail profited from consumers needing their service but now with restrictions lifted and a cost of living crisis making people more cautious with their money, less parcels are passing through the hands of Royal Mail.

Royal Mail has been focussing on trying to make the company a “parcels-led” business as the number of letters being sent through the post declines as the development of technology takes more of a presence within society.

Published 14th October 2022