Royal Mail has announced plans to cut hundreds of jobs.
Around 700 management jobs could go as part of cost-cutting measures.
The company said in a statement on Tuesday (July 25) that it intends to "simplify and streamline" its operation to make sure of an improved focus on performance.
Royal Mail stated: "We are engaging with our unions on the proposals, which we expect will lead to a reduction of around 700 managers and deliver an annualised benefit of around £40 million, with around £30 million in 2022-23."
A statement added: "Our successful 'Day in the Life of' initiative has already reduced administration for frontline managers and allowed us to repurpose over one million annualised hours so that managers can spend more time focusing on their teams and customers.
"As a next step, subject to consultation, we intend to further simplify and streamline our operational structures to ensure an improved focus on local performance, and devolve more accountability and flexibility to frontline operational managers."
The move came as the company revealed that staff absences peaked at 15,000 in early January due to the spread of the Omicron coronavirus variant, which left some postal services struggling.
Royal Mail was one of the big winners from the Covid-19 crisis, with a huge surge in online shopping and deliveries.
However, the company revealed that the high peaks of last year eased off over the Christmas period as more shops were open, leading to falls of 4.9 per cent in parcel revenues and seven per cent in volumes in the final three months of 2021.
However, this was still well up compared with pre-pandemic levels, at 43.9 per cent in revenues and 33% in volumes, Royal Mail added.
Royal Mail chief executive Simon Thompson said: “With the rise of Omicron, absence has been around twice pre-Covid levels, with around 15,000 staff off sick or isolating in early January. Thankfully, this is now improving.
“We are resolutely focused on addressing these issues which have affected our service in some parts of the country.
“Year to date we have spent more than £340 million on overtime, additional temporary staffing and sick pay, as well as providing targeted support for the offices most impacted.”
On the planned job cuts, he said: “We have today entered into formal consultation on a management reorganisation to further streamline our operations and, at the same time, improve focus on local performance.
“We are committed to conducting the process sensitively, working closely with our people and their representatives.
“We have a track record of delivering change through natural turnover, redeployment and voluntary redundancy wherever possible.”
This is a breaking news story and more details will be published when we get them.
