Consignia Statement

Consignia said it will issue a statement this morning on theprogress of the ongoing reorganisation at the post office but declined tocomment on reports it is to make 40,000 job cuts as part of the exercise.

“Everything that was printed (in the newspapers) so far is pure speculation.We will issue a statement later this morning,” a Consignia spokeswoman said.

Press reports today and over the weekend said the company will shed 40,000of its 220,000 workforce, starting with up to 15,000 job cuts at the loss-makingParcelforce unit.

The restructuring of the post office, which will revert back to being calledthe Royal Mail, is far more severe than anyone expected and reports yesterdaysuggested the group would shed around 12,000 posts.

Consignia is also likely to close more than 3,000 urban post offices as partof a major shake-up aimed at cutting costs and ensuring the company’s survival.

According to reports, the remainder of the cuts will come after Easter andthe company hopes to save 1.2 bln stg a year through the cuts, which come as themarket for postal deliveries is opened up to competition in a three-stageprocess starting this year.

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