Royal Mail announced on October 7, 2026, that it intends to cut approximately 2,500 jobs from its head office and support functions by the end of 2027. The postal service cited increasing competition and a significant decline in the volume of letter deliveries as the primary drivers for this restructuring. These proposed job losses represent about 2% of Royal Mail's total workforce of 131,000 employees.

The company emphasized that the planned reductions will not affect frontline staff, including posties and drivers, who are essential to its daily operations. The workforce reduction is designed to enhance operational efficiency and streamline processes within the organization. Royal Mail stated that the changes aim to remove duplication and enable further investment in customer services.

Chief Executive Alistair Cochrane explained that the proposed changes, while difficult, are crucial for building a "stronger, simpler and future-ready Royal Mail." The company is currently engaged in formal consultations with its unions, the Communication Workers Union (CWU) and Unite CMA, regarding these plans. While Royal Mail has indicated that redundancies will be voluntary, unions have expressed concerns.

The CWU has described the announcement as further evidence of a company "demoralising staff and failing to deliver for customers." Deputy general secretary Martin Walsh urged the government to intervene, stating, "We urge the government to confront the reality of a collapsing Royal Mail and intervene to save this national institution."

Royal Mail has faced mounting pressure due to its failure to meet delivery targets. In the year leading up to March, only just over 75% of first-class letters were delivered on time, falling significantly short of its 93% target. This underperformance has led to fines from the regulator, Ofcom.

The company has repeatedly argued that its Universal Service Obligation (USO), which mandates six-day-a-week letter delivery to all UK addresses, is outdated. The decreasing number of people sending letters makes this obligation increasingly difficult and costly to maintain.

More than 100 Members of Parliament have contacted Ofcom and the business secretary this year, raising concerns about the poor service reported by their constituents. In response to these criticisms and to improve its performance, Royal Mail is investing £500 million over the next five years.

Royal Mail is now owned by Czech billionaire Daniel Kretinsky's EP Group, following a shareholder-approved takeover last year. Kretinsky has previously committed to maintaining the six-day-a-week letter delivery requirement as long as he operates the service.