London: Postal service firm Royal Mail is looking to cut up to 16,000 jobs or 10% of its total workforce as a part of its huge cost-reduction plan, a media report says.
“Royal Mail is intending to cut up to 16,000 jobs one in 10 of its workforce to reduce costs by 10%”, The Daily Mirror newspaper said in its the online edition.
According to the report, the company employs about 1,60,000 people.
Citing internal Royal Mail documents, The Daily Mirror revealed that, “all teams have been given a 10% cash reduction target and so we need to focus not only on where we can deliver an excellent service with fewer roles but also opportunities to spend less cash.”
The company is writing to staff with details of redundancy offers under a plan naming ‘Project Tiger’ in a move to reduce its wage bill by £470 million a year.
Royal Mail chief executive Adam Crozier, who earns £3 million a year, last month said that all parts of the group were making money for the first time in 20 years, the report noted.
“Royal Mail is writing to staff offering three options voluntary redundancy, part-time work or switching to another office”, the report said.
The Mirror further noted that those opting for part-time jobs would have their hours cut from 40 a week to less than 25.
However, the report quoted Communication Workers Union Deputy Leader Dave Ward as saying that, “we are not opposed to modernisation but these are random savings which have not been properly worked out.”
“They have nothing to do with modernisation, they are panic measures which will hit the quality of service,” Ward added.
Meanwhile, the company insists that job losses are inevitable as it is delivering five million fewer items a day than two years-ago, the daily stated.
Postal services provider had shed 50,000 jobs since 2002, it added.