Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Losses balloon for Royal Mail as strike action continues to take its toll

by November 17, 2022
November 17, 2022
Losses balloon for Royal Mail as strike action continues to take its toll

Royal Mail confirmed plans to cut 10,000 jobs by next year as losses continue to widen as a result of ongoing strike action and inflationary pressure.

Royal Mail’s parent firm International Distributions Services posted an operating loss of £163m in the half year, 152.4 per cent down from the previous year, where it had a profit of £311m.

Revenue was also down nearly four per cent to £5.7bn, with Royal Mail‘s delivery arm tumbling 10.5 per cent to £3.6bn.

Chief executive Simon Thompson said that he would do “whatever it takes” to turn the company around, confirming plans to shrink the workforce by 10,000 by August next year, with around 5,000-6,000 redundancies required this year.

Royal Mail entered into pay discussions with Communication Workers Union (CWU) earlier in the year over the firm’s 5.5 per cent pay rise.

CWU balloted its members twice on this offer, which it called “adequate” against soaring inflation, and has held eight days of industrial action this year.

The firm estimates that this action has had a direct net impact of around £100m on adjusted operating profit.

Thompson said conversations with the union are ongoing, with the CWU due to take further action over Black Friday – the biggest shopping day for online retailers and delivery partners.

The Royal Mail boss said the firm was working on contingency plans, but would not elaborate on any the progressing talks with the CWU.

Thompson instead said that the Universal Service requires “major reform”, and confirmed that the government had been approached to seek an early move to a five day letter delivery, down from six.

International Distributions Services continues to expect a full year adjusted operating loss of around £350m to  £450m, including the direct impact of 12 days of industrial action, which have taken place or have been notified, but excluding  any charges for voluntary redundancy costs

From an investor perspective, the delivery firm said it would not be paying an interim dividend, with the key focus on “stabilising Royal Mail”.

Read more:
Losses balloon for Royal Mail as strike action continues to take its toll

0
FacebookTwitterGoogle +Pinterest
previous post
Nick Jones, founder of Soho House private members’ club to step down
next post
Jeremy Hunt to announce largest tax rises in a decade targeting wealthy with stealth taxes

You may also like

How Bitcoin and Holochain Rethink Data Integrity

January 18, 2024

Events startup Pollen enters administration months after raising...

August 11, 2022

Three quarters of UK workforce experiencing severe stress

November 3, 2022

Team ITG buys Emerald Thinking Group to accelerate...

December 15, 2022

Sir Keir Starmer Advocates ‘Patriotic Economy’ with Focus...

February 26, 2024

Large businesses take more space in London

February 1, 2024

Oil price sinks below $60 for first time...

April 10, 2025

Why Blocking Blue Light Can Impact Your Productivity—and...

October 9, 2023

UK oil and gas sector ‘must it must...

October 6, 2023

UK job vacancies fall at fastest pace since...

December 9, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved