Parcelforce makes cuts to boost profits
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111 Parcelforce announced its latest round of job cuts last week-200 managerial and administrative posts were declared redundant
The cuts follow on the heels of 400 posts axed over the past year. The changes should take the company into profit by 1996.
Parcelforce management says it is working hard "to avoid any compulsory redundancies".
The latest changes come as Parcelforce faces an uncertain future—the Government will decide in the next two weeks whether to privatise the organisation as part of a Post Office sell-off, But Parcelforce management says the restructuring will increase the company's £500m turnover while reducing costs. This should take the £19m lossmaker into profit by its 1995/96 financial year when the organisation could be privatised along with its sister company Royal Mail.
Parcelforce management will this week start work on splitting the company's remaining 13,000 staff, including 8,000 drivers, into eight UK profit centres, each headed by a general manager. There will also be managers responsible for specific market sectors—a switch from strict product-related selling.