Royal mail will axe 2,000 management tasks since it appears to trim 130m from the wage costs, after profits slumped in addition to company decided not to pay a dividend next year.

Great britain postal solution stated it was undertaking a three-step intend to address the effect of coronavirus that will additionally involve slashing 300m in capital spending and increasing a modernisation drive.

At precisely the same time, it is working with regulators and also the federal government on a review of the universal solution responsibility, under which it's to provide post for the nation at uniform cost six times a week.

Lately, our uk company has not yet adapted rapidly enough to the alterations in our marketplace of more parcels and less letters. covid-19 has accelerated those trends, showing extra difficulties, said president keith williams, which took in an interim executive part following the abrupt exit of chief executive rico right back final month after under 2 yrs inside job.

The deviation capped a turbulent period marked by a trade union dispute and weak financial performance, which had dragged the share cost down to its most affordable level considering that the companys stock market flotation in 2013.

The ftse 250 teams pre-tax profit fell by 25 % to 180m in the year finished march 29, weighed in by its core uk procedure which will be materially lossmaking this year.

Group revenues increased 2.4 % to 10.8bn and with no final dividend, investor payouts will also be suspended the following year. underlying profits were in line with a previously indicated range.

Royal mail said the redundancies would affect about half of its senior leaders and most senior managers, in main and assistance places in place of industry businesses. its total workforce size is about 140,000.

In present months, czech billionaire daniel kretinsky has generated an 8.2 % share in royal mail through vesa equity investment, a vehicle he manages with slovakian company partner patrik tkac. the move has actually fuelled conjecture of a possible takeover or break-up associated with organization, which also works a global parcels arm, gls.