Are they intentionally tanking the share price??

[HairyHobbit]

From today's announcement, it seems like they are really intentionally tanking the share price. Why, I'm not sure? So that VESA can buy more?

Seems strange that the strikes are costing them a lot of money and causing the share price to drop, so they announce the redundancies (which they knew the union would never give up over) and the share price drops again? Why would they ever publicly announce this?

[bigal383]

Numerous reason one cud be takeover another is because they’ll fill there boots and another is to tell the whole world what a mess we’re in and making us scared for our jobs it’s all bulls “”

[Kenfandango]

Same reason Therese Coffey told the nurses to go find another job, they think the fear of not working is stronger than the fear of working for c...s

[dohnut]

Your overthinking all this, investors hate uncertainty, look at the ftse100, the pound ect, its because royal mail is basically an unknown at the moment, if royal mail wins this dispute the share price will rocket, if we win ???. At least your shares will be worth something even if we dont have a job.

[RobertT]

They announced a trading update:

https://www.myroyalmail.com/news/2022/10/message-ceo

CEO Simon Thompson has written to all Royal Mail colleagues as the business gives a trading update and announces a reduction in non-managerial operational roles.

In today’s update we have announced:

An adjusted operating loss of £219 million in the first half of our financial year. By comparison, in the same period last year we made £235 million profit.
Compared to last year, Royal Mail revenue is down 10.5% and domestic parcel volumes are down 16%.
We now estimate that our full year loss could be around £350 million (excluding voluntary redundancy charges). This may increase to around a £450 million loss if customers move more volume away for longer periods following the initial disruption of industrial action.
We estimate that our FTE (full time equivalent) operational workforce will need to reduce by an estimated 10,000 by the end of August 2023.

Wherever possible, we will look to achieve this through natural attrition (not replacing people when they leave), and reductions in overtime and temporary staff. However, based on current estimates, c. 5,000-6,000 redundancies in frontline delivery and processing roles may be required by the end of August 2023.

We know colleagues will have many questions as a result of this announcement so we have set up a dedicated microsite which is available to all colleagues and accessible from any device. This includes a Q&A document, which will be updated regularly and details of how to access our wellbeing advisers and resources to help you at this time.

You can also email questions@royalmail.com with questions and feedback. Whilst we may not be able to answer all individual queries at this stage, we will point you towards the latest information related to your question and will use the feedback to keep our Q&A materials up to date.