Royal Mail signals fresh job losses

Thursday June 16th 2011

Royal Mail employees are at risk of losing their jobs as a sharp decline in the number of people sending post led to a £120 million loss in the postal operator's letters and parcels business in the 2010/11 financial year - its worst performance in seven years.

Last year, the postal operator saw a £20 million profit in its letters and parcels business.

In the 2010/11 financial year, the daily postbag fell 20% from five years ago to 62 million, the Royal Mail said, adding that it is expected to see a further 5% drop a year.

Moya Greene, chief executive of the Royal Mail, said only £18 was being spent by the average person annually on postage, mainly due to the increase in popularity of text messaging and emails.

Nearly 65,000 full and part-time workers have left the business since 2002, including 5,500 in the past year.

A total of 12 mail centres have closed, while a further 16 are set to shut.

Copyright © Press Association 2011

If you're looking for great value, high quality Mortgage Payment Protection Insurance with added benefits you've found it.