SCOTLAND could lose up to 1,600 jobs under a massive cost-cutting scheme announced yesterday by Consignia, owner of the Post Office, Royal Mail and Parcelforce.
Consignia intends to cut Pounds 1 billion off costs and cut its total UK workforce by 20,000.
Unions described the move as the most ruthless attack on costs in the Royal Mail’s 350 year history and said they would vigorously oppose them.
Read MoreConsider this. Your company has had a legal monopoly for 350 years. Your core products are regarded as public services, so the government retains rights to interfere in business decisions. Neither your managers nor your workforce hasever seen a competitor. Suddenly, the government abolishes the monopoly, handing the future of the industry to an untried regulator. The regulator starts licensing competitors, even before establishing a clear regulatory framework.
Meanwhile, you are left with a public sector operating culture, a strike-prone workforce and a legal duty to maintain expensive public services even as competitors start eating into your more profitable markets. How do you respond?
Read MorePalletways has improved its national network by opening a new depot in Edinburgh.
Read MoreRoyal Mail has launched a resource called the Mail Media Centre, aimed at promoting the use of mail-based routes to market among the UK’s leading advertisers.
The centre is designed as a one-stop shop for research and advice about the role mail media can play in brand marketing strategies.
Read MoreCONSIGNIA, formerly the Post Office, told workers yesterday that it was “facing a financial crisis” and announced a pounds 1.2 billion cost-cutting plan involving thousands of jobs. Union leaders described the day as Black Wednesday. Consignia’s announcement coincided with news that British Midland is to axe up to 600 jobs and the French telecoms group Alcatel is cutting more than 650 in London. In an internal memo, John Roberts, Consignia’s chief executive, warned workers that the company would fail unless it took drastic action. “The levels of inefficiency in our business, despite our best efforts to control them, are crippling us.”
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