New strike? Royal Mail to axe 1,600 jobs to cut costs following privatization

Months after the UK’s main postal service it went public, Royal Mail is to let go of 1,600 employees to reduce costs.

13:46 25 March 2014

Royal Mail has announced its plan to cut 1,600 jobs just months after its privatization. However, it also said it intends to create 300 new or enhanced roles bringing down job cuts to 1,300. 

 

The move is geared towards saving the newly privatised company around £50 million a year. The cuts will allegedly not affect postmen or the services provided to customers. 

 

Unite union's Royal Mail officer Brian Scott said Royal Mail’s move is “ruthless.” 

 

He said: "First the Government sells off Royal Mail on the cheap and now the newly privatised service is ruthlessly sacrificing jobs.

 

"We do not believe that it's a coincidence that this announcement has been made just before the company prepares to announce its first full set of accounts since privatisation.”

 

"It's more proof that Royal Mail's primary reason for existing is now about making profits rather than serving the nation.”

 

"For all that Royal Mail managers have been through they do not deserve to be treated in this way.”

 

"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."