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Royal Mail plans to cut 1,600 jobs | Royal Mail plans to cut 1,600 jobs |
(35 minutes later) | |
Royal Mail is planning to cut 1,600 roles as part of a drive to cut costs, mainly among its head office managerial staff. | Royal Mail is planning to cut 1,600 roles as part of a drive to cut costs, mainly among its head office managerial staff. |
The postal delivery service says the net effect will be 1,300 job losses, as it plans to create 300 new or enhanced roles at the same time. | The postal delivery service says the net effect will be 1,300 job losses, as it plans to create 300 new or enhanced roles at the same time. |
It says the cuts are part of its aim to make cost savings of £50m a year. | |
Unite, a union which represents 7,000 Royal Mail managers, warned the cuts could spark industrial action. | |
Royal Mail said it would start consultations on the job cuts with both Unite and CWU on Tuesday. | |
It emphasised that the cuts would have "no impact" on frontline employees including postmen and women. | It emphasised that the cuts would have "no impact" on frontline employees including postmen and women. |
The company said it expected the job cuts to reduce costs by about £25m in 2014-15. | |
Union warning | Union warning |
Royal Mail chief executive Moya Greene said the cuts were necessary for it to "effectively compete in the letters and parcels markets". | Royal Mail chief executive Moya Greene said the cuts were necessary for it to "effectively compete in the letters and parcels markets". |
The company, which floated on the London Stock Exchange last year, said 50,000 of its employees had left since 2003. | The company, which floated on the London Stock Exchange last year, said 50,000 of its employees had left since 2003. |
The Unite union described Royal Mail's proposals as "ruthless". | |
"Royal Mail's primary reason for existing is now about making profits rather than serving the nation," said Brian Scott, Unite officer for Royal Mail. | "Royal Mail's primary reason for existing is now about making profits rather than serving the nation," said Brian Scott, Unite officer for Royal Mail. |
"Unite is demanding a commitment to no compulsory redundancies on fair terms and an effective method for redeployment within the restructured organisation. If Royal Mail refuse we will have no alternative than to consider a ballot for industrial action." | "Unite is demanding a commitment to no compulsory redundancies on fair terms and an effective method for redeployment within the restructured organisation. If Royal Mail refuse we will have no alternative than to consider a ballot for industrial action." |
Royal Mail said making the cuts would cost it about £100m, taking its cumulative "transformation" costs for 2013-14 to £230m. | Royal Mail said making the cuts would cost it about £100m, taking its cumulative "transformation" costs for 2013-14 to £230m. |
It had originally expected transformation costs for the period to be £160m. | It had originally expected transformation costs for the period to be £160m. |
Despite the costs, it said it still planned to invest about £1.2bn into the business between 2013 and 2015. | Despite the costs, it said it still planned to invest about £1.2bn into the business between 2013 and 2015. |