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Consignia plans 40,000 job cuts
Page 7
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to Consignia, the company formally known as the Post Office, has announced a massive restructuring of its business with more than 40,000 job losses over the next three years.
The most significant changes in the short term are being made at Parcelforce Worldwide which is losing about £15m a month—overall Consignia Is losing more than £1.5m every day.
Consignia chairman Allan Leighton says: "Consignia is in a perilous position as we have failed to reduce our costs fast enough as business has declined. We need to renew our operations and halt the financial losses which put key services at risk."
From July, Parcelforce Worldwide will concentrate exclusively on next-day and 48-hour deliveries; non-express deliveries will be handled by Royal Mail.
The five parcel distribution centres, which currently handle three-day-plus deliveries, will close and the number of Parcelforce Worldwide depots will be slashed from 101 to 51.
The company is to also shake up its transport operation with a road-based
regional hub-and-spoke system designed to reduce the number of road journeys made by Royal Mail. This will allow the fleet to be cut from 40,000 to 37,500. A new Midlands hub will be built to take on work from the three existing Midlands sites by the end of 2004.
Parcelforce currently employs 11.700 people: 6,700 jobs are due to go over the next two years. Up to 900 of those employees will have the opportunity to work with Parcelforce Worldwide as owner-drivers, in line with agreements reached with the unions.