Royal Mail job cuts target 2,500 roles

Royal Mail plans to cut 2,500 jobs across its head office and support functions by late 2027 as part of a cost-cutting drive. Announced on 7 October, the cuts affect nearly 2% of its 131,000-strong workforce.

The announcement marks the first major job-cutting plan since Daniel Kretinsky’s EP Group completed its £3.6 billion takeover in December 2024, The Guardian reported.

Chief executive Alistair Cochrane said, “We have been working hard to reduce costs and simplify processes across all areas of the business as we transform to win in a very competitive market.”

Union raises concerns

The Communication Workers Union (CWU) said 200 redundancies affecting administration and revenue staff would be voluntary. Deputy general secretary Martin Walsh said the union would meet management to discuss the changes.

“We will be meeting management to discuss this announcement, which is further evidence of a company that is demoralising staff and failing to deliver for customers and the wider community. We urge the government to confront the reality of a collapsing Royal Mail and intervene to save this national institution.”

Royal Mail previously cut 10,000 jobs in 2022 and 2023, including 6,000 frontline positions.

Delivery reforms add pressure

The latest cuts come amid wider operational changes, including reforms to the Universal Service Obligation approved by Ofcom in July 2025, allowing standard second-class letters to be delivered on alternate weekdays rather than six days a week.

Royal Mail’s DM26 delivery model has also drawn concerns over workloads and staffing. According to figures cited in the source report, the model had been introduced at 800 of the company’s 1,250 delivery offices before further rollout was paused.

Pay and employment conditions

Royal Mail’s restructuring has coincided with continued debate over employment terms for new recruits. An agreement reached in May 2026 deferred further negotiations on equalising employment conditions until January 2027.

The company faces pressure to reduce costs as letter volumes decline and parcel delivery grows in importance, while maintaining service standards and managing the impact of workforce changes.