Arab Today, arab today royal mail takes axe to jobs after going private
Last Updated : GMT 08:27:29
Arab Today, arab today
Arab Today, arab today

Royal Mail takes axe to jobs after going private

Arab Today, arab today

Arab Today, arab today Royal Mail takes axe to jobs after going private

London - AFP

Royal Mail plans to axe 1,600 jobs under a fresh cost-cutting programme, Britain's main postal operator said on Tuesday six months after its controversial part-privatisation by the government. The company said that most of the jobs to go would be in management, with no delivery staff losing their positions. It added in a statement that it would create "300 new or enhanced roles", resulting in a net loss of 1,300 jobs. Royal Mail is shedding about 1.0 percent of its total workforce. The changes are expected to deliver annualised cost savings of around £50 million ($82.5 million, 60 million euros), it said. Royal Mail chief executive Moya Greene said the cuts were necessary for the company "to effectively compete in the letters and parcels markets". A senior official at Britain's largest union Unite warned of strike action in the case of compulsory redundancies. "First the government sells off Royal Mail on the cheap and now the newly privatised service is ruthlessly sacrificing jobs," Brian Scott said in a statement. "It's more proof that Royal Mail's primary reason for existing is now about making profits rather than serving the nation," he added. Royal Mail shares lost 1.63 percent to stand at 574.5 pence in afternoon trading on London's benchmark FTSE 100 index, which was strongly higher overall. "Investors saw their shares fall out of favour... as plans to shed 1,600 staff were met with threats of industrial action from union bosses," said CMC Markets trader Alexander Young in a note to clients. Royal Mail shares floated in October valued at just 330 pence, 74 percent below the current price. The coalition government last year sold off more than half of Royal Mail but has since been accused of selling the company too cheaply. Ministers argue that the flotation price encouraged buyers onto the market, while the partial-sale formed part of the government's drive to slash Britain's budget deficit. Strongly opposed to the change in ownership, union bosses argue that service has suffered. The government has long insisted that partial privatisation will allow Royal Mail the freedom to raise capital, continue modernising and meet booming demand for online shopping that generates parcel traffic. The privatisation was the biggest by a British government since the late prime minister Margaret Thatcher sold off former state-owned companies British Gas and British Telecom in the 1980s. Privatisation of Royal Mail saw its around 150,000 staff receive a free stake in the business, in the largest employee share scheme of any major British flotation for almost 30 years. Ahead of the privatisation, Royal Mail had announced a surge in profits thanks to the increasing popularity of online shopping, and owing also to deep cost-cutting and big increases in stamp prices.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today royal mail takes axe to jobs after going private Arab Today, arab today royal mail takes axe to jobs after going private

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today royal mail takes axe to jobs after going private Arab Today, arab today royal mail takes axe to jobs after going private

 



Arab Today, arab today Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 23:13 2017 Sunday ,18 June

New ransomware virus attacking mobiles in Oman
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday