Royal Mail says to cut 1,600 jobs in wake of partial privatization
March 26, 2014, 1:06 am TWN
LONDON--Britain's main postal operator Royal Mail on Tuesday said it planned to axe 1,600 jobs under a fresh cost-cutting drive six months after the group was partly privatized.
Royal Mail said in a statement that most of the jobs to go would be in management, with no delivery staff losing their positions. It added that it would create "300 new or enhanced roles," resulting in a net loss of 1,300 jobs.
The changes are expected to deliver annualized cost savings of around 50 million pounds (US$82.5 million), it said.
Royal Mail chief executive Moya Greene said the cuts were necessary for the company "to effectively compete in the letters and parcels markets."