The British Royal Mail was in the red in the first half of the year and therefore wants to cut thousands of jobs. Up to 6,000 employees must be laid off by August 2023, the British postal service announced on Friday. The company blamed the move on a wave of strikes.
It is in response to the impact of industrial action, “delays in the delivery of agreed productivity improvements” and lower package volumes.
Parent company also expects high losses
Royal Mail made a loss of £219 million (€253 million) in the first half of the year, compared to a profit of £235 million in the same period last year. Parent company International Distributions Services, with a total of around 140,000 employees, now expects an operating loss of £350 million for fiscal year 2022/23 (March 31).
A day earlier, the Communication Workers Union (CWU) had again called for a strike in the long-running dispute over higher wages and better working conditions. Further exits are planned until the end of the year.
Strikes in industries paralyze parts of public life
“Every day of the strike weakens our financial situation,” said company chief Simon Thompson. “Unfortunately, the CWU’s decision to prioritize damaging strikes over dissolution increases the risk of further downsizing.”
For months, strikes across many sectors – including train services, ports and the communications sector – have repeatedly paralyzed parts of public life in Britain. The new Prime Minister, Liz Truss, has announced that she plans to significantly curtail the right to strike.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
