Royal Mail plans to cut up to 2,500 head office and support-function roles by the end of 2027, the company announced on 7 October 2026 as part of an organisational review. The proposed reduction is less than 2% of Royal Mail's workforce of more than 131,000 people.

Frontline roles protected

The company said there would be no reductions in operational frontline roles in delivery and processing, including posties and drivers. The changes are subject to consultation, and Royal Mail expects them to be achieved through natural attrition and a voluntary redundancy programme, with no compulsory redundancies.

Formal consultation is under way with the Communication Workers Union (CWU) and Unite CMA. The CWU said about 200 of its members in administration and revenue protection would be affected, and the union confirmed it had received the formal S188 and HR1 documents for the proposed headcount reduction.

Letter volumes down more than 70%

Royal Mail said the review is part of a significant transformation programme as it implements Universal Service reform and adapts to a rapidly changing market. Letter volumes have fallen by more than 70% from their peak, while parcel delivery has become the dominant part of the business.

Chief executive Alistair Cochrane said the company had been working hard to reduce costs and simplify processes, and that the changes would remove duplication and allow further investment in customer service. The review is designed to improve efficiency, speed up decision-making and focus resources where they have the biggest impact.

The cuts are the first major restructuring since EP Group completed its takeover of Royal Mail's parent company, International Distribution Services, in 2025. The announcement came as Royal Mail separately recruits almost 22,000 temporary workers for the Christmas peak.