Yodel losing £1m per week ahead of depot and job cuts
Page 6
If you've noticed an error in this article please click here to report it so we can fix it.
By Joanna Bourke
TROUBLED PARCEL carrier Yodel has admitted it is making losses of up to £1m a week and has started a national voluntary redundancy programme for its employees.
According to Yodel documents, seen by CM, inviting employees to apply for voluntary redundancy, the parcel giant states: “As you are aware, for the irst time we are experiencing a simultaneous reduction in B2B and B2C volumes due to the retail recession. The competition for business has become more ierce and delivery patterns are changing. As a result of the external factors, internally we continue to lose over £1m per week. We have decided to commence a voluntary redundancy programme, which is applicable across the Yodel business.” The conirmation of the losses comes shortly after CM exclusively revealed that Yodel is axing up to 60 its of 120 depots, and closing four national hubs (CM 28 April). However, a new ‘superhub’ is set to open in Wednesbury, West Midlands.
Yodel chief executive Jonathan Smith says: “We can see a return to proit, but steps need to be taken irst, and a move to a local courier model will play a part in that, as will a consolidated property portfolio.
“We know we have to be competitive and need a lower operating cost base, as it is tough for all parcel carriers at the moment.” Yodel is the brand name for the merged businesses of HDNL and DHL Domestic, with the former acquiring the latter in March 2010. As at the year to April 30 2010, the combined business had a pre-tax loss of £20.47m.