Royal Mail cost cuts to rein in 2023 losses

[TrueBlueTerrier]

https://www.reuters.com/world/uk/uks-ro ... 023-01-26/

Britain's Royal Mail expects its 2023 losses to be around the mid-point of its prior forecast range as the firm took measures to cut costs and mitigate the impact of strikes, its parent company said on Thursday, sending shares up as much as 4.4%.

The 507-year-old Royal Mail, which was privatised in 2013, is in the middle of a crisis, losing millions of pounds due to staff strikes in a long-running row over pay and conditions.

The company said it now expects an adjusted operating loss near the mid-point of its previous forecast range of 350 million-450 million pounds ($433.5 million-$557.4 million) for the fiscal year ending March 31.


"Credit should go to management, that actions taken to mitigate the impact of more recent strikes have limited the financial impact," Hargreaves Lansdown analyst Matt Britzman said in a note.

Shares of the FTSE MidCap (.FTMC) firm were trading about 2.3% higher at 224.8 pence as of 1028 GMT, off earlier highs.

Royal Mail, part of International Distributions Services Plc (IDSI.L), said its 2023 outlook was hurt by strikes on 18 days in the fiscal year - six more than previously expected - with "tight control of costs and strike contingency measures" reining in some of the losses.

Strikes by British postal workers roiled the key Christmas period after Royal Mail's largest labour union rejected the company's revised offer to increase wages by up to 9% over 18 months, instead of the previously planned two years.

Royal Mail said the number of voluntary job cuts required to achieve its target of a reduction of 10,000 Full Time Equivalent (FTE) roles by August will be significantly lower than the forecast cuts of 5,000-6,000 made in October, partially helped by strong attrition levels.

In a trading update, the company said Royal Mail's revenue fell 12.8% year-on-year in the nine-month period to end-December, while total parcel revenue declined 17.8%. Parcels account for 54% of the firm's total revenue.

In the first nine months of the fiscal year, London-headquartered Royal Mail said the net cost of the strikes was about 200 million pounds. It also expects cash flow to turn negative in 2024.

($1 = 0.8074 pounds)

[pieoftheday]

Get a grip Matt Britzman, credit should go to management indeed, pah n tish

[Barnacle]

I’m not calling them liars or anything….. but how much did they save on the wages bill on those strike days?

[pieoftheday]

I’m not calling them liars or anything….. but how much did they save on the wages bill on those strike days?

Maybe that got soaked up on expensive agency staff

[pieoftheday]

I’m not calling them liars or anything….. but how much did they save on the wages bill on those strike days?

Maybe that got soaked up on expensive agency staff

[pinstripe]

Royal Mail said the number of voluntary job cuts required to achieve its target of a reduction of 10,000 Full Time Equivalent (FTE) roles by August will be significantly lower than the forecast cuts of 5,000-6,000 made in October, partially helped by strong attrition levels.

“Strong attrition rates” otherwise known as driving staff out of their job, but they make it sound like a good thing.

God, I hate these financial analyst types/ RM management, money is king, f*** the employees. I hope they all lose their jobs and end up working for Amazon, EVRI, or Sports Direct.

[Mr Rush]

God, I hate these financial analyst types/ RM management, money is king, f*** the employees. I hope they all lose their jobs and end up working for Amazon, EVRI, or Sports Direct.

If one believes "A.I." is around the corner, then take heart in knowing middle managers and analysts (the laptop classes) will be the first to be replaced.

[funkflex55]

But then we'll have AI monitoring the PDAs and sending messages to us saying that we're not walking fast enough and that they'll be taking over and enslaving us like in that documentary the matrix.

[stevejm]

But then we'll have AI monitoring the PDAs and sending messages to us saying that we're not walking fast enough and that they'll be taking over and enslaving us like in that documentary the matrix.

Not walking fast enough or far enough.

I would like the Union, using orthopedic specialists, to establish a new maximum weekly walking distance - and then have that as part of our contracts.
Going 'over' would mean we accrue steps and eventually rest days if we get to enough steps.

[Barnacle]

But then we'll have AI monitoring the PDAs and sending messages to us saying that we're not walking fast enough and that they'll be taking over and enslaving us like in that documentary the matrix.

Not walking fast enough or far enough.

I would like the Union, using orthopedic specialists, to establish a new maximum weekly walking distance - and then have that as part of our contracts.
Going 'over' would mean we accrue steps and eventually rest days if we get to enough steps.

I would like this too because we are only human and so a maximum walking distance and carrying weight allowance per day would make sense.

The inevitable consequence of their constant monitoring means we will be expected to carry and walk far further and then a bit more, especially if we are quick.

It ought to be capped. Then if you agree to overtime that is your bag, but the basic contract should be capped to avoid injury and sickness early retirement.

[renrag40]

Yes but the only problem with that is the assumption that your employer cares about you and your health. There is copious evidence to the contrary.

[guardianangel]

Its funny how by whipping your workforce harder increases the shares,who'd have thought it in 2023 you make more money by treating your workforce like s--t

[DazzerFreddeh]

We never have a yearly medical to see if we are healthy enough to carry on. Managers selecting postmen to follow for a loop or two would give them an idea of how long people take to answer the door,driving holdups,how heavy the bags are etc etc.
Sitting in an office looking at PDA actuals isn't managing the workers or actually seeing how they work

[mjd24]

We never have a yearly medical to see if we are healthy enough to carry on. Managers selecting postmen to follow for a loop or two would give them an idea of how long people take to answer the door,driving holdups,how heavy the bags are etc etc.
Sitting in an office looking at PDA actuals isn't managing the workers or actually seeing how they work

I dont think they care about any of that.