Scandal hit Post Office 'considering axing a third of jobs' to slash costs

Reports say the Post Office is looking to save £200m by potentially cutting around 2,000 of its 3,100 workforce - some of the savings would be used to boost sub-postmasters’ pay, it is claimed

The Post Office is considering axing third of its workforce in a drastic bid to cut costs, it is claimed.

A review into the future of the network was launched earlier this year by Nigel Railton, its stand-in chairman. According to the Telegraph, one recommendation could result in staff numbers being slashed from around 3,100 to about 1,000.

The cull would form part of a drive to save £200milliion worth of costs. Some of the savings would be used to boost sub-postmasters’ pay, it is claimed. Any job losses would not include these sub-postmasters, the majority of whom are independent.

However, it does raise concerns over the future of Crown post offices, which are owned the company itself. As of March this year there were just 117 such Crown branches left across the UK.

Job cuts could include staff at the Post Office’s London head office, the Telegraph reported.

It comes as the company is still reeling from the Horizon IT scandal. Nick Read, Post Office chief executive, is preparing to face three days of questioning at an inquiry into the affair. The inquiry is looking into the wrongful prosecution of 900 sub-postmasters after a software from Fujitsu incorrectly recorded shortfalls in their accounts.

A Post Office spokesperson said: “Our interim chair commissioned an independent review that’s looking at the sustainability of our branches and how we can best serve communities into the future.

“He has been clear from the outset that remediation for Postmasters affected by the IT scandal and providing postmasters a higher revenue share are his priorities. “A range of recommendations are currently under discussion with the government, and we are engaging with bodies representing Postmasters as these discussions continue.”