Royal Mail profits slump by a third as privatised company rips into workers

[Image: Philip Toscano/PA.]

[Image: Philip Toscano/PA.]

Reading between the lines, the newly-privatised Royal Mail has been losing trade to other private firms, so it has cut the workforce by 3,500.

This of course means Royal Mail is now less capable of delivering a high-quality service than it was when it was privatised.

Result: Royal Mail will lose even more trade to other private firms.

How long would you give it until this once-great British institution keels over and dies?

Royal Mail has said its full-year pre-tax profits slumped 33% to £267m as it took a hit from transformation costs.

The postal delivery company said the fall reflected one-off items, such as pension charges, that distorted its balance sheet.

However, revenue rose 1% to £9.2bn as the chief executive, Moya Greene, hailed a “resilient performance”.

Parcel deliveries, where competition from the likes of FedEx and UPS have eaten into Royal Mail’s market share, rose 3%.

Under Greene, the company has embarked on an ambitious cost-cutting drive and it confirmed it had reduced its headcount by 3,500 over the year.

Source: Royal Mail profits slump by a third | Business | The Guardian


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5 thoughts on “Royal Mail profits slump by a third as privatised company rips into workers

  1. NMac

    A sad state of affairs, but all Tories think about is how much money they can milk out of it in the short term. A prime example of their thinking is that loathsome Tory donor Philip Green, he didn’t care a jot for BHS as a company, or it thousands of hard-working employees, all he thought of was lining his own pockets at their expense. It sums up the Nasty Party in a nutshell.

  2. Roland Laycock

    Over the years the Royal Mail as had all the profitable part hived off, in the sell of the properties they owned by Royal Mail must be worth a small fortune and sold of for nothing

  3. Thomas

    People need economic rights just like we have political rights. If a worker is made redundant for a non-sackable offence, or for no good reason at all-make the company pay a year’s salary to him or her as alimony.If a company sacks a pregnant women, make the company pay her salary until she finds another job or until her child is 18, whichever comes first.

  4. Evan

    Yes perhaps they should look at the wages of the people at the top.
    I remember seeing a great diagram once, a circle of fat cats wondering how to save money because of falling revenues, cutting staff and the revenues falling more, hiring more consultants to work out how to improve revenue and the result was to fire more staff until there was nothing but management left….

Comments are closed.