It’s been a rocky road for the Royal Mail in recent times: the business has struggled to remain profitable as the internet and email provided increasing competition and it’s been forced to slash costs wherever possible.
Since 2002, more than 65,000 jobs have been axed - and today the postal service said it’s planning to cut another 1,700. Meanwhile, to help raise money for modernissation, next month will see the biggest-ever rise in the cost of a first-class stamp, which will increase by 5p to 46p.
The Royal Mail argues the cost of posting a letter in the UK is among the lowest in Europe, and that the service needs to generate more income to help make up for the fall in people posting letters. Profits for the first half of 2010 slumped by 72% and letter volumes have fallen by 16m per day in the last five years. It may be a while yet before the company’s out of red.
- Image: Roo Reynolds, Flickr