Royal Mail post warning on profits and costs sending shares tumbling

[number one]

£500m profit and people are panicking? Is that correct?

[postslippete]

Job cuts should start from the top. I've never heard of 'overboarding' before but there are obviously too many guys on big salaries in our company.

[TheTrolleyMan]

Too many top earners in the boardroom

[aiden01]

£500m profit and people are panicking? Is that correct?

200 million down on last year

[Yamr1]

To many Lino's

[SpacePhoenix]

Job cuts will just mean even more mail failing each day

[Jpro747]

Job cuts should start from the top. I've never heard of 'overboarding' before but there are obviously too many guys on big salaries in our company.

We’re busier than ever, If they take any from the bottom there’s just gonna be more failures which will lead to further losses in the long run as customers will go elsewhere. If there’s one thing people want it’s their parcel as quickly as possible, not sat in a DO for tomorrow cos we ain’t got the staff to deliver it. The competition is hot on RMs heels now.

[fosal29]

Is this the turning point ,have they realised thay we cannot get any more efficient while the USO is in place. Packets are more labour intensive. The begging of the end for rmg????[/quot
to true , could the uso be under threat now hmm , as his is what they have always wanted s**t loads of job losses if this happens . ,

The Bow Group wrote a very interesting paper on the future of Royal Mail back in 2013. This is an extract from it.

So how exactly can a new owner extract greater value from Royal Mail? The simple answer
is to reduce the services that are non-profitable.
Conveniently the government has carried legislation allowing a new owner to do just that.
The 2011 Postal Services Act allows Ministers to create a special administrative regime to
maintain the universal service obligation. It is highly probably that after a few years, a buyer
will conclude that it can no longer fulfill its legal requirement to undertake its legal
obligations. It will then simply transfer the rump of its non-profitable business back onto
the tax-payer, taking with it the highly profitable urban letter and parcels traffic.
In response the regulator will be tasked with ensuring some form of letter delivery in rural
areas is maintained. Its first act will be to reduce the requirements of the universal service, at
a stroke cutting deliveries to rural areas to possibly two or three days a week.
Ofcom will then in turn have to tender contracts on a regional basis to deliver the universal
service obligation with significant taxpayer subsidy. Royal Mail, having exited this particular
market will not want to tender. Rather it would give up elements of its rural infrastructure to
the new operators. A regional network of smaller state subsidised postal operators will then
emerged to undertake to maintain the less onerous requirements set by the regulator.
So over a period a time, Royal Mail will go from a state owned, financial success story to a
privately owned business shorn of any obligations to deliver mail where it does not want to.

[worktotime]

maybe a ploy to s**t on the posties selling there 1st batch of shares so all the vultures will mop them up on the cheap and make a decent profit , or is it another load of shite to do away with the uso ? then that would be massive job cuts .

[worktotime]

Too many top earners in the boardroom

what boardroom ? they don't work enough days a week to have a boardroom , lol

[rambo1]

Tried to top up at 3.85 today but annoyingly my share dealing account decided it didn't recognise the password I've been using for years and locked me out.
As for job cuts... offer me 1 year salary tax free snd I'd bite their hand off

I'd bite both off!!

[rambo1]

£500m profit and people are panicking? Is that correct?

Yes coz it should have been £800m with savings on productivity.

[Sir Henry]

redacted

[FacesOfStone]

Take it as you will, but the potential job cuts mentioned in the article appear to be managerial.

"Simpson also suggested jobs could be axed: “We are [also] looking at … management layers, head office structure and all discretionary spending. We are doing a full portfolio review.”

[Postie45]

the job is so cut to the bone, i dont see how they could get rid of any workers right now. Maybe with improved tech that could affect the amount of sorting they need, but that still seems a way off.