UK’s Royal Mail to cut 1,300 jobs

A man rides a bicycle past a post box in London November 27, 2013.

A man rides a bicycle past a post box in London November 27, 2013.

Published Mar 25, 2014

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London - Britain's newly-privatised postal operator Royal Mail said on Tuesday it would cut around 1,300 operational and head office jobs in order to deliver annualised savings of 50 million pounds ($82.45 million).

Royal Mail, sold off last October in Britain's biggest privatisation for decades, has shed almost 50,000 jobs in 11 years as it restructures the group to better compete in a market that has shifted heavily from letters to parcels.

The company said it had started talks with the Unite and Communication Workers Unions and that it would cut 1,600 roles, with around 300 new or enhanced roles created.

The cuts would not affect postmen and women.

A charge of 100 million pounds would be associated with the cuts, Royal Mail said, adding that the programme would deliver annualised cost savings of around 50 million pounds, of which 25 million pounds would be realised in 2014-15. - Reuters

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