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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.

Royal Mail profit warning

02 Oct 2018, 08:13

https://www.bbc.co.uk/news/business-45712060


Royal Mail shares ended 18% lower on Monday after it warned on profits in an unscheduled trading update.

The post and parcel firm said cost savings would be just £100m this year rather than the £230m forecast.

Addressed letter volume fell by 7% in the first half of the year, while productivity performance was "significantly below plan".

Adjusted operating profit before transformation costs would be between £500m and £550m as a result.

That is significantly lower than the £694m posted last year.

Shares fell 85.7p to 391.4p after the trading update was issued an hour before the London market closed.

Chief executive Rico Back trading conditions in the UK were "challenging", with the number of letters posted - particularly marketing mail - affected by "ongoing structural decline, business uncertainty and GDPR".

In June, Royal Mail said there was some uncertainty among its customers about the General Data Protection Regulation (GDPR), which imposes new requirements on how companies collect and process personal information about EU citizens and came into force on 25 May.

The company said its UK productivity growth had been disappointing, rising just 0.1% - far below the 2% to 3% target - despite no strikes being held by workers during the six months to 23 September.

However, Mr Back said the UK parcels business was performing well with revenue and volume up 6% in the first half.

"We remain focused on delivering parcel revenue growth and pursuing our strategy of targeted and focused acquisitions, through GLS, in growing markets," he said.

GLS is one of Europe's largest parcel delivery firms, covering 41 countries as well as eight states in the Western US and in Canada.

Helal Miah, an analyst at The Share Centre, said the recently appointed Mr Back appeared to be "throwing out the 'baby with the bath water' so he can begin his tenure with a clean slate".

Neil Wilson at Markets.com said it was a "really horrible profits warning", but described the fall in the shares that wiped £1bn off Royal Mail's value as "excessive".

Royal Mail post warning on profits and costs sending shares tumbling

02 Oct 2018, 08:47

And still dropping.

Royal Mail post warning on profits and costs sending shares tumbling

02 Oct 2018, 10:05

It hasn't helped that analysts at Liberum have put out a "sell" note, cutting the price target to 250p. The price is currently 367p.
Now even lower!

oh crap, job cuts

02 Oct 2018, 10:23

think i'll hang on to my shares until after christmas

Royal Mail post warning on profits and costs sending shares tumbling

02 Oct 2018, 10:34

Don't panick ,it may be an opinion but I find the fact that releasing a profit warning only a week to go before 10% of the business can be sold by us very suspicious, the big Investors will snap up the shares when they are so cheap, and watch them rise after a bumper Christmas. The job has never been so busy.

Royal Mail post warning on profits and costs sending shares tumbling

02 Oct 2018, 11:10

Its prettt obvious that this announcement is purley to send the share price plummeting just one week before us lot can sell them tax free. This is pretty disgusting from RMG. Remember the 'Share In Sucess'scheme from a few years ago? Look what happened there

oh crap, job cuts

02 Oct 2018, 11:12

Think it’s about time they cut number of DOMS so that it’s is one Dom for say every 4 offices after all what do they really have to do,not a lot. Our DOM :wave does less hours than the part timers and gets paid £40k plus a year. :wave :wave

oh crap, job cuts

02 Oct 2018, 11:18

Most doms& Lino's home for 11 am on Saturday and start same time as us.
Make them work there hours or chop most down to part time the doms,
Lino just don't need get rid off them all.

oh crap, job cuts

02 Oct 2018, 11:32

Why the panic - only shares which most of us got for free anyway !!

The share price is like house prices or football transfers - mostly made up pie in the sky guesswork.

Royal Mail is going nowhere - pretty much business as usual.

oh crap, job cuts

02 Oct 2018, 11:49

dandydon wrote:Why the panic - only shares which most of us got for free anyway !!

The share price is like house prices or football transfers - mostly made up pie in the sky guesswork.

Royal Mail is going nowhere - pretty much business as usual.

I wouldn't take that for granted. We're not govt owned now. If profits are down cutbacks WILL be made.

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