Royal Mail (LON: RMG) is the latest company to announce a series of job cuts in response to the Coronavirus pandemic.
The group said on Thursday that it will cut one in five management roles in IT, finance, marketing, and sales. The decision to cut the roles will save up to £130mn.
The changes, accelerated by the pandemic, are due to shift towards a 2% increase in parcels and 8% fewer letters that are being sent across the UK.
Keith Williams, the group’s interim chief executive, said: “Covid-19 has accelerated those trends, presenting additional challenges.”
“We are committed to conducting the upcoming consultation process carefully and sensitively. We will work closely with our managers and their representatives during this difficult period, including supporting them as they transition into the next stage in their careers,” he added.
“We are going to continue to tackle the challenges posed by Covid-19. We are implementing a range of immediate cost control activities and reducing capital expenditure in a measured way. Regrettably, one of these measures could see around 2,000 of our managers leave our business.”
Williams is stepping in for Rico Back, who left the group in a surprise move last month.
In the year to March 2020, pre-tax profits fell by 25.3% to £180m.
It is the latest in a string of companies to announce job cuts amid the Coronavirus pandemic. Earlier this week, Swissport announced plans to cut 53% of its UK workforce.
Royal Mail shares were down 6.6% in Thursday morning trading.