As losses increase, Royal Mail will cut up to 10,000 jobs.

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Royal Mail has stated that it will eliminate 10,000 jobs by the end of next August due to continuous strike activity and growing company losses.

The postal service announced that it will start informing employees of its proposal, which might result in up to 6,000 layoffs.

In addition to the redundancies, the company will eliminate positions through natural attrition, such as by not hiring replacements for departing employees.

Royal Mail added that it anticipates losing £350 million for the entire year.

Fewer parcels were being mailed, as well as “the immediate consequence of eight days of industrial action,” according to the statement.

However, the company issued a warning that losses might exceed £450 million “if consumers move volume away for longer periods” as a result of strike action.

The general secretary of the CWU claimed that the announcement by Royal Mail was the result of “gross mismanagement and a failed business agenda” that included ending daily deliveries, significantly lowering the terms, pay, and working conditions for postal employees, and transforming Royal Mail into a courier service akin to the gig economy.

Royal Mail reported that strike action cost the company £70 million during the first half of its fiscal year, resulting in an operating deficit of £219 million as opposed to a profit of £235 million the previous year.

There are currently 140,000 employees in the organisation. It intends to eliminate 5,000–6,000 positions through layoffs. By not hiring replacements for departing employees, eliminating temporary workers, and decreasing overtime, the headcount will be reduced by another 4,000.

Members of the CWU are on strike because of a salary agreement Royal Mail made earlier this year. This consists of a 2% salary increase. Additionally, subject to workers’ accepting certain restrictions, such as being required to work on Sundays to deliver packages, a further 3.5% raise

Working on Sundays is currently optional. Because most online purchases are made in the evening or late at night and require next-day delivery, Royal Mail also wants staff to start and end their shifts later.

As fewer letters are being sent through the post and more people shop online, Royal Mail has been working to transform the company into a “parcels-led” enterprise.