Royal Mail to cut 700 managers after Omicron delivery crisis

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Photograph: Christopher Thomond/The Guardian

Company faced disruption over Christmas because of high levels of sickness absence

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Royal Mail plans to cut 700 management jobs and lowered its profit outlook after a tough Christmas when deliveries were disrupted by high sickness levels caused by the spread of Omicron.

The company said it had started consulting unions on the cuts, which were designed to “streamline operational management to improve focus on performance at a local level”. It has frequently been at loggerheads with unions over changes, and stressed that the cuts would be made “through natural turnover, redeployment and voluntary redundancy, wherever possible”.

Global Tech News Daily

Royal Mail employs 140,000 people, and the 700 management cuts are out of a total of 8,000 managers.

Related: Unilever to cut 1,500 jobs as investors increase pressure

Global Tech News Daily

The job cuts will save £40m a year, but result in a one-off charge of £70m. This means Royal Mail’s full-year adjusted operating profit will miss its previous £500m estimate and come in at £430m.

The latest job losses come on top of 2,000 reductions outlined in June 2020 – one in five management roles – in areas including IT, finance, marketing and sales.

Russ Mould, the investment director at the stockbroker AJ Bell, said: “In streamlining the business, Royal Mail needs to ensure it doesn’t go too far and diminish its operational capability or spark widespread industrial action, the threat of which has hung over the business in the past.”

Thanks to a surge in parcel delivery driven by the online spending boom, Royal Mail made a £311m pretax profit in its first half after barely scraping a profit a year earlier.

Royal Mail said it handled 439m parcels in the three months to December, and said it was confident that a “structural shift” had occurred in parcel volumes since the start of the pandemic. Domestic parcel revenues increased by nearly 44% compared with 2019 levels, and fell by 4.9% year on year. Covid test kits made up a mid-single digit percentage of total parcel volumes in the first nine months of the year.

Overall revenues dropped 2.4% year on year to £3.5bn in the quarter, but were up 17.1% compared with 2019 levels.

As the Omicron variant spread, 15,000 Royal Mail staff were off sick or isolating in early January, leading to slower deliveries in some parts of the country. The company said absence levels were now improving. Complaints from customers have also jumped to a decade high, as Royal Mail received more than 1m last year.

Keith Williams, the chair, said: “We delivered a solid performance over the Christmas period in particularly challenging circumstances operationally … We expected some decline in parcel volumes given most retail stores were open during the period, unlike last year. However, the trend towards customers wanting more parcels remains, and responding to that change efficiently is key.

“Our domestic parcels business in the UK has seen demand increase by around a third over two years, as has our GLS business across its markets.” GLS is Royal Mail’s international parcel business, based in Amsterdam.

He stressed the importance of Royal Mail’s modernisation plans in light of the fast-paced change and ongoing inflationary pressures.

Mould said: “For a few years Royal Mail was delivering like the worst postie in the depot, parcels marked fragile launched over hedges, letters delivered to the wrong houses and so on, as it really struggled to modernise the business.

“Now, helped by the massive growth in parcels being sent during the pandemic, it finally seems to be getting its act together.”

Royal Mail shares rose 5% on Tuesday morning, making it the top riser on the FTSE 100.

News Related

OTHER NEWS

Big Tech Looks To Buy Beaten Down Innovation-Fueled Entrants

The recent rate-fueled valuation crush among next-gen tech has created some ripe acquisition opportunities for cash-rich mega-cap tech. After rapidly deteriorating investor sentiment, Peloton PTON is the latest acquisition target, ... Read more »

HP (HPQ) Stock Moves -0.29%: What You Should Know

In the latest trading session, HP (HPQ) closed at $37.49, marking a -0.29% move from the previous day. This change was narrower than the S&P 500’s daily loss of 0.37%. ... Read more »

One Stop Systems, Inc. (OSS) Flat As Market Sinks: What You Should Know

In the latest trading session, One Stop Systems, Inc. (OSS) closed at $4.05, marking no change from the previous day. This change was narrower than the S&P 500’s daily loss ... Read more »

Luminar Technologies, Inc. (LAZR) Gains As Market Dips: What You Should Know

Luminar Technologies, Inc. (LAZR) closed at $14.84 in the latest trading session, marking a +0.27% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. ... Read more »

NCLT okays Taguda's revival plan for Ushdev International

The dedicated bankruptcy court has approved Taguda revival plan for BSE-listed Ushdev International. The company, featuring in the central bank’s second list of large defaulters, was referred for mandatory resolution ... Read more »

Rel Capital resolution: Lenders hire KPMG India, L&L Partners

Lenders to Reliance Capital have appointed KPMG India as their process advisor andetL&L Partners the legal counsel to help negotiate the challenges in the resolution of Anil Ambani-promoted Reliance Capital, ... Read more »

Soaring refining margin bodes well for oil firms

The industrial complex in the southern port city of Ulsan where production bases of Korea’s major petrochemical companies are located (Yonhap)South Korean oil refiners’ key profitability measure has been rising ... Read more »

Buckle (BKE) Gains As Market Dips: What You Should Know

Buckle (BKE) closed at $37.24 in the latest trading session, marking a +1.36% move from the prior day. This change outpaced the S&P 500’s 0.37% loss on the day. – ... Read more »

AutoNation (AN) Dips More Than Broader Markets: What You Should Know

In the latest trading session, AutoNation (AN) closed at $103.57, marking a -0.46% move from the previous day. This change lagged the S&P 500’s 0.37% loss on the day. – ... Read more »

FuboTV Inc. (FUBO) Stock Moves -0.3%: What You Should Know

fuboTV Inc. (FUBO) closed at $10.07 in the latest trading session, marking a -0.3% move from the prior day. This change was narrower than the S&P 500’s 0.37% loss on ... Read more »

Fiverr International (FVRR) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Fiverr International (FVRR) closed at $81.01, marking a -0.52% move from the previous day. This change lagged the S&P 500’s daily loss of 0.37%. – ... Read more »

Sterling Construction (STRL) Gains As Market Dips: What You Should Know

Sterling Construction (STRL) closed at $27.51 in the latest trading session, marking a +1.63% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

Boise Cascade (BCC) Gains As Market Dips: What You Should Know

Boise Cascade (BCC) closed at $77.20 in the latest trading session, marking a +0.69% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

CRISPR Therapeutics AG (CRSP) Gains As Market Dips: What You Should Know

In the latest trading session, CRISPR Therapeutics AG (CRSP) closed at $62.36, marking a +0.76% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.37%. ... Read more »

Bausch Health (BHC) Dips More Than Broader Markets: What You Should Know

Bausch Health (BHC) closed the most recent trading day at $24.39, moving -0.53% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.37%. – Zacks ... Read more »

ETF Strategies to Consider for February as Fed's Rate Hike Nears

Wall Street has been mostly kind to investors so far in February after a tough January. Market participants are upbeat about improving U.S. economic conditions as reflected by encouraging fourth-quarter ... Read more »

Bank of Nova Scotia (BNS) Gains As Market Dips: What You Should Know

Bank of Nova Scotia (BNS) closed at $73.75 in the latest trading session, marking a +0.78% move from the prior day. This move outpaced the S&P 500’s daily loss of ... Read more »

Fox (FOXA) to Report Q2 Earnings: What's in the Offing?

Fox FOXA is set to report second-quarter fiscal 2022 results on Feb 9.For the quarter, the company’s current Zacks Consensus Estimate for earnings is pegged at breakeven against a loss ... Read more »

Generac Holdings (GNRC) Gains As Market Dips: What You Should Know

In the latest trading session, Generac Holdings (GNRC) closed at $279.97, marking a +0.01% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

Spirit And Frontier Announce $6.6 Billion Merger

Spirit Airlines Incorporated (NYSE:SAVE) and Frontier Group Holdings Inc (NASDAQ:ULCC) have announced a $6.6 billion merger to create one of the largest low-cost airlines in the U.S. The new airline ... Read more »

First Trust Energy AlphaDEX Fund (FXN) Hits a 52-Week High

The First Trust Energy AlphaDEX Fund FXN is probably a suitable pick for investors looking for momentum. FXN hit a 52-week high and is up 59.6% from its 52-week low ... Read more »

CDC: high risk people to receive 4th Covid jab 3 months after 3rd

The U.S. Centers for Disease Control and Prevention (CDC) is dropping the recommend time between third and fourth Covid shots for immunocompromised people to three months, from five. The move ... Read more »

Stock futures inch higher after S&P, Nasdaq fall to start the week

U.S. stock index futures crept higher during overnight trading Monday, after the major averages moved between gains and losses during regular trading as the market awaits key inflation data later ... Read more »

Immunovant (IMVT) Reports Wider-Than-Expected Loss in Q3

Immunovant, Inc. IMVT reported a net loss of 36 cents per share in the third quarter of fiscal 2022 (ended Dec 31, 2021), wider than the Zacks Consensus Estimate of ... Read more »

Buckle's (BKE) Sales Run Continues in January, Comps Gain 4.2%

The Buckle, Inc. BKE looks well poised on the back of its robust strategic efforts, including strength in e-commerce business and an impressive sales trend. BKE has been putting up ... Read more »

6 Best-Leveraged ETF Areas of Last Week

Wall Street put up a moderate show last week with the S&P 500 (up 1.6%), the Dow Jones (up 1.1%), the Nasdaq Composite (up 2.4%) and the Russell 2000 (up ... Read more »

Interpublic (IPG) to Report Q4 Earnings: What's in the Cards?

The Interpublic Group of Companies, Inc. IPG is scheduled to report fourth-quarter 2021 results on Feb 10, before the opening bell. – Zacks Let’s check out how things have shaped ... Read more »

Mednax (MD) Buys Night Lite Pediatrics to Boost Portfolio

Mednax, Inc. MD and its affiliated practices Pediatrix Medical Group recently acquired Night Lite Pediatrics, LLC in Orlando, FL. Night Lite is a private 13-clinic pediatric urgent care practice. The ... Read more »

Best Growth Stocks to Buy for February 7th

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 7th: – Zacks Apple AAPL: This company whose business primarily runs around its ... Read more »

Gol Linhas (GOL) Stock up 16.2% in a Month: More Upside Left?

Shares of Gol Linhas GOL have displayed an uptrend on the bourses over the past month, gaining 16.2% against its industry’s 3.1% decline. – Zacks Image Source: Zacks Investment Research ... Read more »

Top Research Reports for Bank of America, Coca-Cola & salesforce

Monday, February 7, 2022 The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including Bank ... Read more »

Sanofi's (SNY) Enjaymo Gets FDA Nod For Rare Blood Disorder

Sanofi SNY announced that the FDA has approved its monoclonal antibody, Enjaymo (sutimlimab-jome), to decrease the need for red blood cell transfusion due to hemolysis in adult patients with cold ... Read more »

The Zacks Analyst Blog Highlights: Alphabet, T-Mobile US, Advanced Micro Devices, Mondelez International and Chubb

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

IRS to stop using facial recognition for identity verification

Signage outside the Internal Revenue Service (IRS) headquarters in Washington, D.C.Bloomberg | Bloomberg | Getty Images The IRS on Monday announced it will stop using a controversial third-party service for ... Read more »

Why Mid-America Apartment Communities (MAA) is a Great Dividend Stock Right Now

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

Surging Earnings Estimates Signal Upside for Xilinx (XLNX) Stock

Investors might want to bet on Xilinx (XLNX), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and ... Read more »

BCB Bancorp (BCBP) is a Top Dividend Stock Right Now: Should You Buy?

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

The Zacks Analyst Blog Highlights: AbbVie, Merck, Eli Lilly, Novartis and Pfizer

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

BankUnited (BKU) Stock up 3.4% on New Share Repurchase Plan

BankUnited, Inc. BKU has announced a new share repurchase plan. The company’s board of directors has approved the repurchase of up to $150 million in shares of BKU’s outstanding stock. ... Read more »

TEGNA Inc. (TGNA) Soars 7.4%: Is Further Upside Left in the Stock?

TEGNA Inc. TGNA shares rallied 7.4% in the last trading session to close at $21.34. This move can be attributable to notable volume with a higher number of shares being ... Read more »