The national postal service of the United Kingdom intends to make additional job cuts in its letters division. The job cuts are due to the increase in the number of social networking sites, emails and texts. The postal service experienced a 22 percent decline in the number of letters mailed each day. That is a huge percentage drop for any company to experience.
According to the International Business News, the Royal Mail has been losing more than £2 million (3.23600 million U.S.) a week. The postal service has been cutting down 42,000 employees since 2002. Unfortunately, the U.K. postal service has to cut down even more jobs in order to survive. The Royal Mail will not disclose exactly how many jobs will be cut, but the speculation is at least 20,000 jobs. The cuts will be for both part-time and full-time employees. However, the union plans to organize a strike.
Looking at the Royal Mail loss of £120 million (194.16 million U.S.) in the last financial year has dragged the Royal Mail’s business to a £49-million (79.28200 million U.S.) loss, compared to a £113 million (182.83400 million U.S.) profit a year earlier.
Five years ago, over 80 million items were posted, and the overall prediction is that the daily postbag capacity will reduce in size by a further 25 percent over the next five years.
I wonder if the Royal Mail jobs cuts reflect a similar situation in the United States. I am sure our increase in social networking, online banking and emails have affected the U.S. Postal Service.