Consignia to cut 17,000 jobs

Struggling British postal operator Consignia says it will axe another 17,000 jobs and return to the old name of Royal Mail as…

Struggling British postal operator Consignia says it will axe another 17,000 jobs and return to the old name of Royal Mail as it unveiled an annual loss of £1.1 billion sterling.

The job cuts would bring total job losses announced across the group to about 32,000 - or about 16 per cent of the Consignia workforce.

The firm will lose its monopoly and faces the first phase of liberalisation in its mail markets next year. It is losing £1 million a day and blames its plight on a lack of investment in the operation over the years.

It said it would change its name to Royal Mail Group by the end of 2002, only 15 months after spent £500,000 on renaming itself Consignia - a name criticised as meaning nothing to the public and as a sign of weak management.

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Consignia said the loss was mostly made up of exceptional costs from restructuring, but also included a £318 million loss on its day-to-day operations.

Overall turnover rose 3.6 per cent to in the year, but growth was outstripped by a 4.8 per cent rise in costs.