UK: Royal Mail to axe 2,000 jobs as 'immediate action'

By Gokhan Ergocun

ISTANBUL (AA) – Britain’s Royal Mail announced on Thursday that it will axe 2,000 management jobs to cut costs amid the challenges of the COVID-19 pandemic.

"We’re taking immediate action on costs, which will result in a £130 million [$161.8 million] saving in people costs next year and flat non-people costs," Keith Williams, interim executive chair of the UK postal service, said in a press release.

He added that this comes along with "a reduction of around £300 million in capex [capital expenditures] across the Group over the next two years, to address the immediate impact of COVID-19."

The postal service is planning its largest reduction in senior executive roles and non-operational functions.

The Royal Mail employs more than 161,000 personnel, including 9,700 management staff.

Its revenue dropped £29 million in the first two months of this year on an annual basis, according to the press release.

After first appearing last December in China, COVID-19 has spread all around the world, hitting Europe and the US economies hardest and caused hundreds of thousands of job losses.