More Royal Mail managers facing the axe in snap cull

Royal Mail's chief executive, Moya Greene, has ordered a snap cull of delivery office managers as part of her latest round of cost cuts to get the company ready for privatisation.

Managers were told on Friday that all those who had volunteered for redundancy would leave by the end of this month apart from a minority the company wants to keep.

Departing managers will be paid their 12 weeks' notice as well as their redundancy terms in an apparent show of decisive action after Royal Mail posted a loss last week.

The cuts are said to cover all management grades on permanent contracts with the group. It is unclear how many will be affected.

No compulsory managerial redundancies have been made so far, but a further swathe of managers were declared "surplus" and will be moved to fill vacancies in other offices in a process known as "bumping".

A Royal Mail spokesman said: "Royal Mail is in a difficult financial position. Mail volumes have fallen by more than 20% in the last five years and are forecast to fall by around 5% a year in the future. We have made clear the company will be smaller in future as a result of volume declines. This is irrespective of any moves on privatisation.

“We announced in March we would be consulting Unite/CMA on reducing operational managers by 1,000 through voluntary means. This followed a separate review which means 1,700 non-operational managers in head office departments are leaving. As part of this process, some managers who had applied for voluntary redundancy were told last week their applications had been accepted.

“There has been no new job reductions announced. It remains our policy to first tell our colleagues and the unions about any developments affecting people in the company.

“Since 2002, 45,000 people full time equivalent people have left Royal Mail Group."



The sudden move is said to have been taken without consulting the Communication Managers Association union, which was taken by surprise. The union, which represents Royal Mail's rank and file, is already considering industrial action to fight the plan.

Ms Greene ordered area managers to tell staff of the latest cuts by Friday.

She warned publicly last week that more cuts were on the way after Royal Mail's letters division posted a loss of £120m for the last financial year. This sent the group to a £49m loss for the year from a £113m profit the year before.

Friday's job reductions show Ms Greene's cuts digging into managerial posts. The group announced in March that it intended to reduce the number of operational managers it employed by 1,000 through a programme of voluntary redundancies.

Ms Greene, the former head of the Canadian postal service, was parachuted into the top job at Royal Mail to get the company in shape for a sell-off that could be delayed until she turns performance around. She made £637,000 in pay and bonuses last year.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Lou Reed distorted the truth about his upbringing, and since his death in 2013, biographers and memoirists have added to the myths
musicThe truth about Lou Reed's upbringing beyond the biographers' and memoirists' myths
News
people
News
Ed Miliband received a warm welcome in Chester
election 2015
Life and Style
Apple CEO Tim Cook announces the Apple Watch during an Apple special even
fashionIs the Apple Watch for you? Well, it depends if you want it for the fitness tech, or for the style
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...

Ashdown Group: IT Manager / Development Manager - NW London - £58k + 15% bonus

£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...

Recruitment Genius: Sales Consultant / Telemarketer - OTE £20,000

£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...

Ashdown Group: Training Programme Manager - City, London

£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...

Day In a Page

NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders
Heston Blumenthal to cook up a spice odyssey for British astronaut manning the International Space Station

UK's Major Tum to blast off on a spice odyssey

Nothing but the best for British astronaut as chef Heston Blumenthal cooks up his rations
John Harrison's 'longitude' clock sets new record - 300 years on

‘Longitude’ clock sets new record - 300 years on

Greenwich horologists celebrate as it keeps to within a second of real time over a 100-day test
Fears in the US of being outgunned in the vital propaganda wars by Russia, China - and even Isis - have prompted a rethink on overseas broadcasters

Let the propaganda wars begin - again

'Accurate, objective, comprehensive': that was Voice of America's creed, but now its masters want it to promote US policy, reports Rupert Cornwell
Why Japan's incredible long-distance runners will never win the London Marathon

Japan's incredible long-distance runners

Every year, Japanese long-distance runners post some of the world's fastest times – yet, come next weekend, not a single elite competitor from the country will be at the London Marathon
Why does Tom Drury remain the greatest writer you've never heard of?

Tom Drury: The quiet American

His debut was considered one of the finest novels of the past 50 years, and he is every bit the equal of his contemporaries, Jonathan Franzen, Dave Eggers and David Foster Wallace
You should judge a person by how they peel a potato

You should judge a person by how they peel a potato

Dave Hax's domestic tips are reminiscent of George Orwell's tea routine. The world might need revolution, but we like to sweat the small stuff, says DJ Taylor
Beige is back: The drab car colours of the 1970s are proving popular again

Beige to the future

Flares and flounce are back on catwalks but a revival in ’70s car paintjobs was a stack-heeled step too far – until now
Bill Granger recipes: Our chef's dishes highlight the delicate essence of fresh cheeses

Bill Granger cooks with fresh cheeses

More delicate on the palate, milder, fresh cheeses can also be kinder to the waistline
Aston Villa vs Liverpool: 'This FA Cup run has been wonderful,' says veteran Shay Given

Shay Given: 'This FA Cup run has been wonderful'

The Villa keeper has been overlooked for a long time and has unhappy memories of the national stadium – but he is savouring his chance to play at Wembley
Timeless drama of Championship race in league of its own - Michael Calvin

Michael Calvin's Last Word

Timeless drama of Championship race in league of its own