Royal Mail to Cut 2,500 Jobs by 2027 as Letter Demand Falls

Royal Mail to Cut 2,500 Jobs by 2027 as Letter Demand Falls

Royal Mail is set to cut 2,500 head office and support jobs by the end of 2027 as the UK postal service responds to falling demand for letters and rising competition.

The planned reduction represents about two per cent of Royal Mail’s workforce, which currently stands at around 131,000 employees.

The company said frontline staff, including postmen, women and delivery drivers, would not be affected by the planned restructuring.

Royal Mail said the job cuts would come mainly through voluntary redundancy and natural staff departures rather than compulsory dismissals.

Chief executive Alistair Cochrane said the changes would help the company remove duplicated roles, improve efficiency and put more money into its services.

He said the restructuring was necessary to create a simpler and more efficient Royal Mail while improving the service offered to customers.

The company has begun formal discussions with its unions, including the Communication Workers’ Union and Unite CMA, over the proposed changes.

However, the Communication Workers’ Union criticised the plans, arguing that Royal Mail was further weakening staff morale while failing to deliver an acceptable service to customers.

CWU deputy general secretary Martin Walsh called on the British government to address what he described as the serious problems facing the postal service.

Royal Mail has faced increasing complaints over delivery delays and has struggled to meet regulatory performance targets.

Only slightly more than 75 per cent of first-class letters arrived on time in the year ending March, falling well short of the company’s 93 per cent target.

The decline in letter volumes has also renewed calls for changes to Royal Mail’s Universal Service Obligation, which requires letters to be delivered six days a week to every UK address.

Royal Mail has argued that the requirement needs to be reviewed because fewer people now send letters compared with previous years.

More than 100 MPs have also contacted Ofcom and the UK business secretary over complaints from constituents about delayed and unreliable deliveries.

Despite the planned job cuts, Royal Mail said it would invest £500 million over the next five years to improve its operations and services.

The company is now owned by Czech billionaire Daniel Kretinsky’s EP Group after shareholders approved the takeover in April last year.

Kretinsky has previously pledged to maintain Royal Mail’s six-day-a-week delivery obligation across the United Kingdom while he remains in control.

The latest restructuring is part of Royal Mail’s wider effort to cut costs, adjust to changing communication habits and improve delivery performance.