Connect with us

Hi, what are you looking for?

Editor’s Pick

Losses balloon for Royal Mail as strike action continues to take its toll

Royal Mail confirmed plans to cut 10,000 jobs by next year as losses continue to widen as a result of ongoing strike action and inflationary pressure.

Royal Mail’s parent firm International Distributions Services posted an operating loss of £163m in the half year, 152.4 per cent down from the previous year, where it had a profit of £311m.

Revenue was also down nearly four per cent to £5.7bn, with Royal Mail‘s delivery arm tumbling 10.5 per cent to £3.6bn.

Chief executive Simon Thompson said that he would do “whatever it takes” to turn the company around, confirming plans to shrink the workforce by 10,000 by August next year, with around 5,000-6,000 redundancies required this year.

Royal Mail entered into pay discussions with Communication Workers Union (CWU) earlier in the year over the firm’s 5.5 per cent pay rise.

CWU balloted its members twice on this offer, which it called “adequate” against soaring inflation, and has held eight days of industrial action this year.

The firm estimates that this action has had a direct net impact of around £100m on adjusted operating profit.

Thompson said conversations with the union are ongoing, with the CWU due to take further action over Black Friday – the biggest shopping day for online retailers and delivery partners.

The Royal Mail boss said the firm was working on contingency plans, but would not elaborate on any the progressing talks with the CWU.

Thompson instead said that the Universal Service requires “major reform”, and confirmed that the government had been approached to seek an early move to a five day letter delivery, down from six.

International Distributions Services continues to expect a full year adjusted operating loss of around £350m to  £450m, including the direct impact of 12 days of industrial action, which have taken place or have been notified, but excluding  any charges for voluntary redundancy costs

From an investor perspective, the delivery firm said it would not be paying an interim dividend, with the key focus on “stabilising Royal Mail”.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

<?xml encoding=”utf-8″ ??> The exodus of workers from the jobs market over the pandemic has weakened prospects for Britain’s economic growth, the governor of...

News

Elon Musk talks about his company’s Starlink project at the Mobile World Congress, Barcelona, Spain, June 30, 2021. — BRISA PALOMAR / PACIFIC PRESS/SIPA...

News

PHILSTAR FILE PHOTO The National Economic and Development Authority (NEDA) has approved seven “high-impact” projects, ranging from agriculture to transportation, the agency’s top official...

News

Television (TV) advertising is shifting toward addressable TV, a service that allows advertisers to show different ads to different audiences watching the same program,...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Wayne Janse Van Rensburg, Chief Executive of education company Learndirect talks to Business Matters about the inspiration behind their business, which...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Rokt, the global leader in ecommerce technology, is today announcing a new partnership with Oracle Red Bull Racing, the leading Formula...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.