Royal Mail has announced plans to cut 700 manager roles.
As part of a restructure, the group will let go of 700 managers which will lead to savings of £40 million per year.
The cost of restructuring will be an initial cost of £70 million, which will lead to lower profits from the year. Profits will fall from £500 million to £430 million.
“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,” said the group.
Since Covid, there has been a dramatic increase in domestic parcels. According to the Royal Mail, there was a 33% increase in domestic parcels for the last quarter of 2021 compared to 2019 levels.