Consignia to cut 15,000 jobs
March 25, 2002 Posted: 11:11 AM EST
LONDON, England - UK post office operator Consignia is to cut 15,000 jobs over three years in an effort to reduce costs amid growing competition from the private sector.
Consignia, which is estimated to be losing £1.5 million ($2.14 million) a day, said on Monday it hopes to save £460 million ($656 million) annually through a restructuring programme.
The group operates the Royal Mail delivery service and post office network, as well as parcel delivery division, Parcelforce.
Consignia has previously warned that up to 30,000 jobs could eventually be cut from its 200,000 workforce.
"Radical surgery is required both to our parcels strategy and to our internal transport infrastructure. Both have developed in a piecemeal fashion, and have lost sight of market and network logic," Consignia Chairman Allan Leighton said in a statemment. .
"These programmes, together with other savings to our management, operations and support services, mean that around 15,000 jobs will go over the next three years including anticipated natural turnover of around 2,000 people."
Leighton added the group has "more work to do and more announcements regarding other parts of Consignia will be made as we agree detailed plans."
The Sunday Times said Consignia is also planning to the split the group into three separate businesses -- Parcelforce, Royal Mail and the post office network.
Britain's postal regulator has recommended that the group's 250-year monopoly end by 2002.
