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oh crap, job cuts

01 Oct 2018, 19:44

Job cuts will just mean even more mail failing each day

oh crap, job cuts

01 Oct 2018, 19:52

postslippete wrote:Job cuts should start from the top. I've never heard of 'overboarding' before but there are obviously too many guys on big salaries in our company.

We’re busier than ever, If they take any from the bottom there’s just gonna be more failures which will lead to further losses in the long run as customers will go elsewhere. If there’s one thing people want it’s their parcel as quickly as possible, not sat in a DO for tomorrow cos we ain’t got the staff to deliver it. The competition is hot on RMs heels now.
Last edited by Jpro747 on 01 Oct 2018, 19:55, edited 1 time in total.

Royal Mail post warning on profits and costs sending shares tumbling

01 Oct 2018, 19:53

worktotime wrote:
rambo1 wrote:Is this the turning point ,have they realised thay we cannot get any more efficient while the USO is in place. Packets are more labour intensive. The begging of the end for rmg????[/quot
to true , could the uso be under threat now hmm , as his is what they have always wanted s**t loads of job losses if this happens . ,


The Bow Group wrote a very interesting paper on the future of Royal Mail back in 2013. This is an extract from it.

So how exactly can a new owner extract greater value from Royal Mail? The simple answer
is to reduce the services that are non-profitable.
Conveniently the government has carried legislation allowing a new owner to do just that.
The 2011 Postal Services Act allows Ministers to create a special administrative regime to
maintain the universal service obligation. It is highly probably that after a few years, a buyer
will conclude that it can no longer fulfill its legal requirement to undertake its legal
obligations. It will then simply transfer the rump of its non-profitable business back onto
the tax-payer, taking with it the highly profitable urban letter and parcels traffic.
In response the regulator will be tasked with ensuring some form of letter delivery in rural
areas is maintained. Its first act will be to reduce the requirements of the universal service, at
a stroke cutting deliveries to rural areas to possibly two or three days a week.
Ofcom will then in turn have to tender contracts on a regional basis to deliver the universal
service obligation with significant taxpayer subsidy. Royal Mail, having exited this particular
market will not want to tender. Rather it would give up elements of its rural infrastructure to
the new operators. A regional network of smaller state subsidised postal operators will then
emerged to undertake to maintain the less onerous requirements set by the regulator.
So over a period a time, Royal Mail will go from a state owned, financial success story to a
privately owned business shorn of any obligations to deliver mail where it does not want to.

oh crap, job cuts

01 Oct 2018, 19:54

maybe a ploy to s**t on the posties selling there 1st batch of shares so all the vultures will mop them up on the cheap and make a decent profit , or is it another load of shite to do away with the uso ? then that would be massive job cuts .

oh crap, job cuts

01 Oct 2018, 19:56

TheTrolleyMan wrote:Too many top earners in the boardroom

what boardroom ? they don't work enough days a week to have a boardroom , lol

oh crap, job cuts

01 Oct 2018, 19:57

wacko74 wrote:Tried to top up at 3.85 today but annoyingly my share dealing account decided it didn't recognise the password I've been using for years and locked me out.
As for job cuts... offer me 1 year salary tax free snd I'd bite their hand off

I'd bite both off!!

oh crap, job cuts

01 Oct 2018, 19:58

number one wrote:£500m profit and people are panicking? Is that correct?

Yes coz it should have been £800m with savings on productivity.

oh crap, job cuts

01 Oct 2018, 20:08

redacted
Last edited by Sir Henry on 02 Oct 2018, 16:27, edited 1 time in total.

oh crap, job cuts

01 Oct 2018, 20:13

Take it as you will, but the potential job cuts mentioned in the article appear to be managerial.

"Simpson also suggested jobs could be axed: “We are [also] looking at … management layers, head office structure and all discretionary spending. We are doing a full portfolio review.”

oh crap, job cuts

01 Oct 2018, 20:30

the job is so cut to the bone, i dont see how they could get rid of any workers right now. Maybe with improved tech that could affect the amount of sorting they need, but that still seems a way off.

oh crap, job cuts

01 Oct 2018, 20:33

FacesOfStone wrote:Take it as you will, but the potential job cuts mentioned in the article appear to be managerial.

"Simpson also suggested jobs could be axed: “We are [also] looking at … management layers, head office structure and all discretionary spending. We are doing a full portfolio review.”

oh dear :thumbup , to be honest there where peoples names mentioned on 64 k a year and I haven't even heard of and what do they do for the company and for 1 or 2 days a week . its disgusting imo .

oh crap, job cuts

01 Oct 2018, 20:37

Postie45 wrote:the job is so cut to the bone, i dont see how they could get rid of any workers right now. Maybe with improved tech that could affect the amount of sorting they need, but that still seems a way off.


I hope it's a while off! Although still being in my 'trial' period, I worry daily about getting the chop as it is. It's difficult to see how they could skimp on office budgets much more than they seem to - the state of the HCTs and (most) of the LWTs where I am is really something...

oh crap, job cuts

01 Oct 2018, 21:20

Hope they do cut a load of lino’s.... mines a hafeful c**t

oh crap, job cuts

01 Oct 2018, 21:22

FacesOfStone wrote:Take it as you will, but the potential job cuts mentioned in the article appear to be managerial.

"Simpson also suggested jobs could be axed: “We are [also] looking at … management layers, head office structure and all discretionary spending. We are doing a full portfolio review.


Another step to merging DO's with mail centres and making bigger out of town depots serving several areas.

oh crap, job cuts

01 Oct 2018, 21:31

CharlesSpooner wrote:
FacesOfStone wrote:Take it as you will, but the potential job cuts mentioned in the article appear to be managerial.

"Simpson also suggested jobs could be axed: “We are [also] looking at … management layers, head office structure and all discretionary spending. We are doing a full portfolio review.


Another step to merging DO's with mail centres and making bigger out of town depots serving several areas.

Good luck trying to find the space in MCs

oh crap, job cuts

01 Oct 2018, 21:54

SpacePhoenix wrote:
CharlesSpooner wrote:
FacesOfStone wrote:Take it as you will, but the potential job cuts mentioned in the article appear to be managerial.

"Simpson also suggested jobs could be axed: “We are [also] looking at … management layers, head office structure and all discretionary spending. We are doing a full portfolio review.


Another step to merging DO's with mail centres and making bigger out of town depots serving several areas.

Good luck trying to find the space in MCs


DO's are way too small as well - Portacabins are the future :shock:

I reckon we are going the way of out of town warehouse / superhubs (for want of a better word) as I imagine the amount of prime space RM holds in city/town centres all over the UK is worth an absolute fortune.

Royal Mail post warning on profits and costs sending shares tumbling

02 Oct 2018, 00:07

Here is another take on the RMG share plunge today from the Financial Times:

https://www.ft.com/content/f67a5268-c588-11e8-bc21-54264d1c4647

Investors take fright at Royal Mail profit warning

UK postal service cites missed productivity and cost-saving targets

Michael Pooler

Royal Mail’s share price sank by almost a fifth after the UK postal service warned that core profits would be more than 20 per cent lower this year because of missed productivity and cost-saving targets.

Improving productivity was one of the pillars of a wide-ranging settlement with trade union leaders earlier this year, which ended an industrial dispute that had threatened nationwide strikes.

Under the deal, Royal Mail committed to reducing working hours in exchange for changes to work practices. But the FTSE 100 company said on Monday afternoon that the improvements were “taking longer than expected” to deliver.

Adjusted operating profit before transformation costs — which strips out expenses from a long-running modernisation programme — is now forecast to come in between £500m to £550m in 2018-19. That compares with £694m in the year ended March 25.

The share price initially fell 19 per cent, though it later pared back some of the losses to finish the day 18 per cent down at 391.4p, valuing the company at £3.91bn.

Royal Mail explained that productivity growth at its core UK business was “significantly below plan” at 0.1 per cent in the first half of this financial year, compared to a full-year target near the upper end of 2-3 per cent. Another contributing factor was a bigger than expected decline in letters, with new EU rules on data protection reducing the volume of junk mail.

Royal Mail sends message to investors with focus on parcels

Royal Mail also reduced its cost savings target from £230m to £100m this year, adding that it was “implementing a range of short-term cost measures”.

“We are conducting an assessment of the efficiency and productivity opportunities under the [labour] agreement,” the group said.

Some analysts have voiced doubts about whether Royal Mail’s productivity initiatives would be enough to offset the additional costs of a shorter working week.

The profit warning is another headache for Rico Back, chief executive, just four months into the job. Royal Mail was already trying to mend fences with investors, who protested over executive pay at the annual meeting this summer.

It may possibly need to cut investment

Mr Back said that a positive note was that UK parcel volumes and revenues were up 6 per cent in the first half of 2018-19.

While the source of the problems is Royal Mail’s main UK business, the group also revealed that even GLS, its international parcels business, was feeling pressure. Rising labour and other costs meant that profit margins were being affected more than anticipated at GLS.

Rob Byde, an analyst at Cantor Fitzgerald, said: “Many of these trading trends have been signalled in recent updates and therefore we are somewhat surprised at the more than £100m downgrade to consensus forecast operating profit. The statement on productivity and costs suggests the easy wins are now in the past.”

Daniel Roeska, a Bernstein analyst, said the company “must choose between [the] dividend and its future”.

“It may possibly need to cut investment,” he wrote in a note to clients. “This may safeguard dividends in the near term, but by reducing profitability in the long-run damage put strategic pressures on the dividend.”

---------

A very interesting comment,

"The profit warning is another headache for Rico Back, chief executive, just four months into the job."

Face it Rico - it's time to move from Zurich, Switzerland to London, UK!

Royal Mail post warning on profits and costs sending shares tumbling

02 Oct 2018, 06:31

Looks like a scam to me. High volumes and a profit warning would cause a massive drop, ideal for anyone wanting to but shares in bulk. My office has a busy year, volumes are definately up.

I suspect somebody is going to buy a lot of shares today.

Royal Mail post warning on profits and costs sending shares tumbling

02 Oct 2018, 06:39

rambo1 wrote:
lala wrote:Anyone who has requested their shares to be sold are going to be a bit grumpy!

Was that new share save scheme starting this morning? If so they'll be grumpy too if they bought at 480!

no, the first buy on this new scheme is the 15th of every month , the same day posties can sell there free shares tax free ,

oh crap, job cuts

02 Oct 2018, 06:57

CharlesSpooner wrote:
SpacePhoenix wrote:
CharlesSpooner wrote:
FacesOfStone wrote:Take it as you will, but the potential job cuts mentioned in the article appear to be managerial.

"Simpson also suggested jobs could be axed: “We are [also] looking at … management layers, head office structure and all discretionary spending. We are doing a full portfolio review.


Another step to merging DO's with mail centres and making bigger out of town depots serving several areas.

Good luck trying to find the space in MCs


DO's are way too small as well - Portacabins are the future :shock:

I reckon we are going the way of out of town warehouse / superhubs (for want of a better word) as I imagine the amount of prime space RM holds in city/town centres all over the UK is worth an absolute fortune.

Think you'll find they don't actually own many.

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