Royal Mail to axe 3500 jobs

22 March 2011

postmanRoyal Mail is planning to axe up to 3,500 jobs and close two mail centres under plans which are loosely referred to as 'modernising' the company.

The centres, based in East and South London are going to be closed with 750 roles jobs being lost. There'll also be a loss of 1,000 line managers through voluntary redundancies, but the Royal Mail needs to clear it with the staff unions first.

Elsewhere, 1700 head office managers have already started leaving under something called a "rationalisation programme", which sounds a bit like something from some grim Dystopian novel.

Since 2002, the Royal Mail has reduced the number of employees they have by around 65,000.

Apparently, staff have been given more bad news after being told that the value of their equity under an employee share scheme is now effectively worthless.

"With the number of postal items posted in London expected to more than halve between 2006 and 2014, it is imperative that Royal Mail continues the modernisation programme," the company said in a statement. Mark Higson, Royal Mail's managing director of operations and modernisation, said that the future of the letters and parcels business "depends on having the right number of people... as well as deploying the right technology and equipment. We are conscious of the impact today's announcement will have on our staff in London.

"It is hard to reduce job numbers at any time. We are committed to doing everything we can, in line with our agreement with the union, to make these changes on a voluntary basis."

TOPICS:   Debt


  • Yue
    Just before they privatise it. I get more post than ever with internet shopping, the Royal Mail are way ahead of the private companies. I expect to pay more for less service in the future.
  • Tim
    No loss with less staff. Get crap service now, I'll get a crap service in the future. Privatisation won't make it much worse than it already is. It may bring in competition though. I welcome the private sector who can deliver a service the customer wants and will pay for and not some socialist ideal. If that means the death of Royal Mail, so be it. People bang on about British Rail as an example of privatisation gone wrong in these cases, but under gov owned BR we'd still have death trap slam door trains and a rotting service with strikes every few days.
  • Yue
    Don't agree Tim, Amazon used a company that promised delivery before xmas on the 18 and it arrived after xmas day. We tracked it to the local depot, drove 1/2 hour to collect it and it wasn't there. Stuff ordered via Amazon that was delivered by royal Mail arrived on time. British Rail hasn't improved it's service, the cost increases are because they syphon off service contracts to a subdivision, if a tap breaks on a sink at Victoria and American company I won't name charges £600 to replace it. And still you pay a fortune for the same travel you hand before. And the unions are still there mate. Watch and see what happens to our mail and other services like the NHS and remember this day. You will wish I'd been wrong. Our experiences don't always take into account all of the facts.
  • Yue
    Few typos there, sorry. Incidentally the RM stuff was ordered after the stuff being delivered by the private company.
  • Nob
    Prices for posting letters are riciculous now, and are soon going up to 46p for a first class letter / 36p second class. If I can use email, I will. Some of the only things I post these days are the prepaid envelopes I get send from advertising companies. And I put rubbish in those before posting.
  • Kai G.
    I am therefore grateful for the blog. Excellent.

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