Royal Mail will cut up to 2,000 management positions as part of a restructuring program. The company reported it as the figures for the 2019-2020 financial year were published. Partly due to the corona crisis, the company is forced to act according to the dire situation. Virus trouble causes much lower mail volumes pricessed.
The 500-year-old company wants to save £ 130 million, about € 144 million, on personnel costs next year. Investments will also be cut by £ 300 million over the next two years. Despite the interventions, Royal Mail expects the British postal and parcel activities to be loss-making in the current financial year.
Parcel deliverer GLS, which is based in Amsterdam, remains an important part of the postal service, according to Royal Mail. With that position, rumours about a possible split-off of GLS were suppressed. Parcel delivery is reviving as a result of the crisis. People order more online for fear of the virus. The increase in parcel volume was insufficient to offset Royal Mail’s mail division and corporate mail and parcel delivery collapse. The company also had to incur more costs for hiring a flexible workforce and buying protective clothing.
In the past fiscal year ending March 31, the company recorded an adjusted pre-tax profit of £ 275 million.