Royal Mail to cut 3000 jobs aiming to save 500m by 2017-18

[POSTMAN]

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Royal mail has announced to cut 3,000 jobs in an effort to save costs in a time of declining letter sales. The delivery service saw its share price soar more than 5.5% in response to the job cuts.
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The FTSE 100 firm's profit fell by almost a third in the first half of the company's 2015-16 financial year. The company said that the decline of the amount of letters sent was less than expected. Royal Mail is focusing on parcel deliveries as companies such as Amazon and ASOS have increased the pressure on delivery time in that sector.

Reported pre-tax profit was £116m in the six months to 27 September 2015, down 30.5% from the number in 2014. Revenue fell by 1.85% to £4.4bn. As an accelerating number of people and businesses now use digital channels of communication, the letter market is being challenged.

"We are driving through a range of product innovations and service improvements at pace, as well as targeting new areas of growth and enhancing our offering," Moya Greene, the chief executive of Royal Mail, commented.

One of those product innovations is a driverless van service, coined by the executive in order to save drivers' costs. Following her response, the Communication Workers Union told IBTimes UK that she could face a health and safety challenge. The union also said that Greene should focus on real human resources issues.

Alternative communication methods and projects like parcel automation is all part of Greene's transformation plans. Despite higher overall costs, the firm managed to push down transformation spending.

"As a result of an acceleration of our UK cost savings programme and a better than expected performance in GLS, Group operating profit before transformation costs was flat in the first half," Greene said.

Royal Mail holds a rather significant share of the letter delivery market. After Dutch rival Whistl withdrew from the UK market, communications regulator OfCom launched an enquiry into the Royal Mail because of possible competition breaches.

The group - now back in private hands following the completion of its privatisation - said it had saved £200m in annual costs over the last three years and aimed to save another £500m by 2017-18.

[baldrick]

http://www.ibtimes.co.uk/royal-mail-pro ... ne-1529466

Royal mail has announced to cut 3,000 jobs in an effort to save costs in a time of declining letter sales.

One of those product innovations is a driverless van service, coined by the executive in order to save drivers' costs.

What is a driverless van service??

[bustedflush]

http://www.ibtimes.co.uk/royal-mail-pro ... ne-1529466

Royal mail has announced to cut 3,000 jobs in an effort to save costs in a time of declining letter sales.

One of those product innovations is a driverless van service, coined by the executive in order to save drivers' costs.

What is a driverless van service??

An invisible driver on ghost overtime.....

[Pompey Boy]

Wouldn't be fair to the public not to have a driver in the van to insult when they feel like it And what about emptying boxes, post offices, picking up mail from customers, loading and unloading vehicles etc etc? She nearly got it right - what we need are Guvnorless offices

[baldrick]

Perhaps they could save even more money by having a postpersonless delivery service

[GT750rider]

" The group - now back in private hands following the completion of its privatisation - said it had saved £200m in annual costs over the last three years and aimed to save another £500m by 2017-18.
To quote " Now back in private hands " . I don't understand .When was RM in private hands prior to the recent sell-off ?

[5plusbonusball]

Wouldn't be fair to the public not to have a driver in the van to insult when they feel like it And what about emptying boxes, post offices, picking up mail from customers, loading and unloading vehicles etc etc? She nearly got it right - what we need are Guvnorless offices

[olilew]

They keep bangin on about this 'decline in letter sales' but at ours the last few weeks it's been chaos with the volumes of mail!

[franco1]

For a start they could save a few pounds by asking us to bring in our own toilet paper....

[datasaint]

http://www.ibtimes.co.uk/royal-mail-pro ... ne-1529466

Royal mail has announced to cut 3,000 jobs in an effort to save costs in a time of declining letter sales.

One of those product innovations is a driverless van service, coined by the executive in order to save drivers' costs.

What is a driverless van service??

I imagine it'll be like a automated drop-box combined with a van. That way it can arrive at the customers home or nearby, a designated bay on the van unlocks and the customer removes their parcel.

All it will really take is staff at the DO or MC to load it.

[Pompey Boy]

That won't happen because we had a WTL about that

Why don't we have a board of directors without directors - that would save loads and we wouldn't miss them

[Red Robbo]

Moya is talking about Drones, trialled by Amazon in the US to deliver parcels to customers, watch this space,lol.

[arnold cheshire]

Moya is talking about Drones, trialled by Amazon in the US to deliver parcels to customers, watch this space,lol.

Drones and a driverless van ? How funny

[steve1812]

How an earth can royal mail cut 3000 jobs when walks nationally have not gone out for 3 to four days because of holidays /sick leave and god help you if you have a rest day , you just arrive back to double the work load. We are at the bone now if they want cuts start from the very top and work down.

[framusjsx]

company is a joke. meanwhile there are morons inventing delivery to neighbour 739 booklets and filming s**t for rmtv