LONDON, UNITED KINGDOM / RankWire.AI / – Royal Mail plans to cut up to 2,500 head-office and support jobs by the end of 2027. The company announced the proposed reductions on October 7 as part of an organisational review. The cuts represent less than 2% of a workforce exceeding 131,000 people. Royal Mail said frontline operational roles, including postmen, postwomen and drivers, will not form part of the planned reductions.
The restructuring covers central and support functions as Royal Mail simplifies processes across the business. The company expects natural attrition and voluntary redundancies to account for the reductions, with no compulsory redundancies planned. Chief Executive Alistair Cochrane said the changes would remove duplication and support further investment in customer service. Royal Mail has started consultations with unions representing affected employees.
Royal Mail is carrying out the review while letter volumes continue to decline and parcel demand changes the delivery market. The company says letter volumes have fallen by more than 70% from their peak. It is also implementing reforms to the Universal Service after regulatory changes introduced last year. Those reforms allow Second Class letters to move to alternate-weekday delivery while First Class keeps six-day service.
Universal service reforms reshape delivery network
Ofcom changed Royal Mail’s delivery requirements after a long-term fall in letter use across the United Kingdom. New targets that took effect in April require 90% of First Class mail to arrive the next working day. The rules also require 95% of Second Class mail to arrive within three weekdays. Royal Mail expects to complete the phased rollout of its new delivery model across about 1,200 delivery offices by December 2026.
The regulator is also investigating Royal Mail’s delivery performance for the 2025/26 financial year. Royal Mail reported delivering 75.7% of First Class mail within one working day, below the previous 93% target. It delivered 90.2% of Second Class mail within three working days, below the previous 98.5% target. Ofcom has said Royal Mail committed £500 million over five years to improve delivery performance and reach the revised targets by April 2027.
Unions respond to planned Royal Mail job cuts
The Communication Workers Union said the proposals could affect about 200 union-represented jobs in administration and revenue protection. The union said Royal Mail had assured it that frontline operational grades would remain outside the programme. It also said the company had ruled out compulsory redundancies and would use agreed redeployment procedures. The CWU called on the UK government to intervene over the condition of the postal service and said it would meet management about the proposals.
Unite also criticised the planned reductions and linked its concerns to Royal Mail’s service performance and employment standards. The organisational review comes after EP Group completed its takeover of Royal Mail parent International Distribution Services in 2025. Royal Mail remains the United Kingdom’s designated universal postal service provider. The company is continuing its £500 million service improvement programme while carrying out the workforce review and rolling out the revised letter delivery model.