Some attribute recorded losses to staff strikes and warn of further adjustments if mobilization continues

MADRID, October 14 (EUROPA PRESS) –

British parcel and courier company Royal Mail intends to cut around 10,000 jobs through next August as a result of the losses suffered by the company, linking this result to a strike by the workforce, as announced by International Distributions Services, the parent company of the UK. The Post Office, which estimates it will lay off about 6,000 workers.

“We will begin a consulting process to resize the business in response to the impact of the strike, delays in achieving agreed productivity increases and lower package volumes,” the company explained.

Specifically, Royal Mail will make adjustments to 5,000 full-time jobs by March 5, 2023, which will reach 10,000 jobs by the end of August 2023, which could mean layoffs of between 5,000 and 6,000 employees, while the remainder will be achieved. by not covering the victim and reducing the temporary position.

The company has announced in a statement sent to the London Stock Exchange, where it has been listed since 2013, that in the first six months of its fiscal year it recorded an adjusted operating loss of 219 million pounds (252 million euros), compared to a gain of 235 million pounds ( 270 million euros) from the same period the previous year, including a direct adverse impact of 70 million pounds (80 million euros) due to 3 days of mobilizing its workforce.

In this way, Royal Mail estimates for its fiscal year an adjusted operating loss of around 350 million euros (403 million euros), including the immediate and direct impact of the eight days of mobilization undertaken or notified to the company, warning that the ‘red numbers’ could increase. to 450 million pounds (518 million euros) if an interruption causes users to reduce service usage.

In this regard, the company warned that the Communications Workers Union (CWU) plans to hold another 16-day strike in November and December, although it has not officially notified the Royal Mail of its plans.

“Should this occur, the full year’s losses would materially increase and could require further operational restructuring and reductions in the number of employees,” the company said, adding that the situation could lead to a decrease in the book value of Royal Mail’s business, as it prompted CWU to immediately call off the strike that had occurred. planned and accepted bargaining offers to resolve current disputes.

These results further highlight the need for significant and urgent changes at Royal Mail with further streamlining of business and modernization of work practices.