Royal Mail Letters MD resigns over plan
Ian Griffiths, managing director of Royal Mail Letters, has resigned after the board rejected his business plan.
Mr Griffiths, who had been with Royal Mail only a year, is thought to have been resisting deep cost-cutting being demanded by the Government in return for about GBP 3.9bn in state support.
Regarded as number three in the Mail hierarchy, Mr Griffiths joined from GKN Automotive on a salary close to GBP 500,000 after his predecessor resigned just 18 months into the job.
A spokesman for Royal Mail said yesterday that Adam Crozier, the group’s chief executive, would run the letters operation until a replacement was found. “We will begin looking for a new person for the role going forward,” he added.
The departure creates yet more uncertainty at the Royal Mail, which is in the process of restructuring and in pay negotiations with unions.
The search is on for a new deputy chairman, who would probably then succeed Allan Leighton when his contract expires next March.
In February, Royal Mail announced that profits collapsed 86pc in the six months to the end of September from GBP 159m to GBP 22m. The company loses GBP 4m a week on its creaking network of post offices. For every stamped letter, sent mainly by individuals, it loses about 6p.
Royal Mail has argued that the opening up of the UK’s mail market last January has caused competition to flood in more quickly than anticipated, worsening its financial position.
Analysts say the root cause of the Royal Mail’s problems are its inability to control costs and its need to finance its growing pension fund deficit.
Royal Mail has seen several recent departures, including David Flowers, head of property, who left in January.
