Royal Mail could cut 5,000-6,000 jobs by next August (updated)
14/10/2022 07:34
(Adds detail, background)
Oct 14 (Reuters) - Royal Mail could cut as many as 5,000
to 6,000 jobs by the end of August next year, parent company
International Distributions Services IDSI.L said on Friday, as
the British company remains locked in a bitter dispute with its
largest labour union.
The Communication and Workers Union (CWU), representing
115,000 Royal Mail postal workers, have held strikes in
September and early October, and have threatened more strikes
this month and next.
Royal Mail would post an adjusted operating loss of around
350 million pounds this year, after taking into account the hit
from the strikes that have taken place or are scheduled,
International Distributions Services forecast.
"We will be starting the process of consulting on
rightsizing the business in response to the impact of industrial
action, delays in delivering agreed productivity improvements
and lower parcel volumes," it said in a statement.
The company said there could be more job losses at Royal
Mail, its UK business, if strikes went ahead during the holiday
period.
GLS, its international distribution network, has been
performing in line with expectations, the company said.
The CWU did not immediately respond to a Reuters' request
for comment.
Royal Mail, the former British postal monopoly recently
changed the name of its holding company to International
Distributions Services from Royal Mail Plc.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Savio
D'Souza)
((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa;
+919742735150;))