UK postal operator Royal Mail sacks 2 000 staff
Demand for parcels suffered from an ongoing slump
26 June 2020 | Business
The former state-run company revealed the cost-cutting overhaul in its annual results, adding that the Covid-19 outbreak had sparked a jump in demand for parcels but it still suffered from an ongoing slump in its core letters business.
"In recent years, our UK business has not adapted quickly enough to the changes in our marketplace of more parcels and fewer letters," said the company's executive chair Keith Williams in an earnings statement.
"We're taking immediate action on costs, which will result in a US$161 million saving in people costs next year and flat non-people costs, along with a reduction of around £300 million in capital expenditure across the group over the next two years, to address the immediate impact of Covid-19.
"Regrettably, we are also proposing a management restructure impacting around 2 000 roles," he added.
Since Britain's lockdown was imposed on March 23, Royal Mail employees have enjoyed an elevated status with the UK public thanks to their key role in delivering virus test kits and helping businesses to survive the economic fallout. – Nampa/AFP