Royal Mail announced that it will cut 2,500 head‑office and supporting roles by the end of 2027 as it struggles with competition and a decline in letter deliveries. The reduction will represent roughly 2 % of the company’s 131,000 employees, but posties and drivers will not be affected by the restructuring.
Chief executive Alistair Cochrane said the cuts are aimed at removing duplication and improving efficiency, allowing the firm to invest further in the service it delivers for customers. He added that the job cuts “will not be easy, but they are an important part of building a stronger, simpler and future‑ready Royal Mail for our customers and colleagues”.
The company will pursue voluntary redundancies and encourage staff to leave, rather than enforce compulsory layoffs. Royal Mail is in formal consultation with the Communication Workers Union (CWU) and Unite CMA over the plans.
Both unions criticised the announcement. The CWU warned that the cuts were evidence of a demoralising culture and urged the government to intervene, while Unite said the restructuring would not improve service quality and highlighted the company’s failure to address high competition from gig‑economy postal services.
Royal Mail has struggled to meet delivery targets for first and second‑class post, with just over 75 % of first‑class letters delivered on time in the year to the end of March, far below its 93 % target. The firm has repeatedly called its Universal Service Obligation—delivering letters six days a week to every address in the UK—outdated and in need of reform.
Despite criticism, Royal Mail is investing £500 million over the next five years as part of its improvement plan. The company, owned by Czech billionaire Daniel Kretinsky’s EP Group, has said it will not abandon the six‑day delivery requirement as long as it remains in charge.
Union leaders and MPs have urged Ofcom and the government to address the service’s shortcomings, citing slow deliveries and alleged attempts to conceal target misses. Royal Mail’s workforce reduction is part of a broader effort to adapt to a changing market and rebuild efficiency.
