Latest news with #costCutting
Yahoo
10-07-2025
- Business
- Yahoo
Royal Mail given green light to scrap second-class post on Saturdays
Royal Mail will be allowed to scrap Saturday deliveries for second-class post and switch to an alternate weekday service instead from later this month, regulator Ofcom has announced. The regulator said that from July 28, Royal Mail will be able to axe the six-day-a-week service for second-class letters, but will maintain Monday to Saturday deliveries for first-class post. It said it would keep the target for second-class letters to arrive within three working days despite changing deliveries to every other weekday. The changes come after a lengthy consultation and will help Royal Mail cut costs by between £250 million and £425 million a year, according to Ofcom. Royal Mail is not expected to push through the overhaul to all second-class letter deliveries across the UK from this month, but will look to roll it out having already launched pilots in 37 of its 1,200 delivery offices. The industry watchdog said reform of the so-called universal service was needed to help it 'survive', as people send far fewer letters and as the cost of stamps has been soaring. Ofcom said it had also launched a review of the price of stamps amid concerns over affordability, with a consultation set for next year. It added that targets would be lowered for first-class post to be delivered the next day from 93% to 90% and second-class to be delivered within three days from 98.5% to 95% . But Ofcom said it was adding a new 'enforceable' backstop delivery target, so that 99% of mail has to be delivered no more than two days late. Natalie Black, Ofcom's group director for networks and communications, said: 'These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival. 'But changing Royal Mail's obligations alone won't guarantee a better service – the company now has to play its part and implement this effectively. 'We'll be making sure Royal Mail is clear with its customers about what's happening, and passes the benefits of these changes on to them.' Martin Seidenberg, group chief executive of Royal Mail parent firm International Distribution Services (IDS), welcomed the move from Ofcom, having long urged the Government for reform of the universal service. He said: 'It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service.' Royal Mail made a loss of £348 million in 2023-24, even though the cost of a first class stamp now stands at £1.70 after big hikes in recent years. But the changes also follow recent hefty fines against Royal Mail for poor performance, with an investigation launched in May after it only delivered just over three-quarters of first-class post on time last year. Ofcom had already fined Royal Mail a combined £16 million for missing its post delivery targets in the previous two years. Citizens Advice said Ofcom had 'missed an opportunity' for more significant changes to the postal service, while the Liberal Democrats said Royal Mail had been let 'off the hook'. Tom MacInnes, director of policy at Citizens Advice, said: 'Royal Mail has a woeful track record of failing to meet delivery targets, all the while ramping up postage costs. 'Today, Ofcom missed a major opportunity to bring about meaningful change.' Liberal Democrats business spokeswoman Sarah Olney added: 'This is a deeply worrying decision that could leave countless people who rely on these deliveries in the lurch.' 'Ofcom needs to think again and not let Royal Mail off the hook at the expense of people who expect the bare minimum of their post arriving on time,' she said. The Government said it was 'right' for Ofcom to look at postal reforms. 'We now need Royal Mail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK,' a government spokesperson added. The overhaul follows the recent £3.6 billion takeover of Royal Mail owner IDS by Czech billionaire Daniel Kretinsky's EP Group, which completed in June after being cleared by the Government at the end of 2024. Mr Kretinsky – named as the new chairman of Royal Mail after the deal – has pledged to stick to the Universal Service Obligation (USO) after the takeover. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Daily Mail
17-06-2025
- Business
- Daily Mail
Outsourcer Capita earmarks cost savings for AI war chest
Capita has outlined plans to reinvest cash saved during recent cut backs into artificial intelligence-powered tech. It came as the outsourcing giant, which administers the BBC licence fee, told shareholders it expects 'broadly flat' sales this year, but with stronger margins thanks to cost cutting efforts. After expanding its cost-cutting target by £90million to £250million last December, Capita said it had now achieved £185million in annualised savings. It is ploughing much of the spare cash into artificial intelligence products, such as the recently established Capita AI Catalyst Lab, which has already identified over 200 use cases across the company. Capita has also become one of the first businesses across Europe to use Salesforce's Agentforce to help recruit new staff more quickly. Adolfo Hernandez, chief executive of Capita, said interest in agentic AI solutions has 'grown exponentially'. He added: 'We are reinvesting a portion of our efficiency savings into new technology solutions, particularly those underpinned by AI, and we are focused on bringing these technology solutions to more clients.' Capita's adjusted turnover declined by 4.5 per cent in the five months ending May. Sales rose by 2.3 per cent in its public service division, thanks to central government work and by 6.4 per cent in the firm's regulated services business, partly due to a one-off termination exit fee. But they slumped by 21.1 per cent in its contact centre arm owing to weaker volumes on telecommunications-related contracts. Nonetheless, the London-based group won £969million worth of contracts during the period, a 24 per cent jump on the same time last year. These included a £97million deal from the Royal Navy to provide training services, a £92.4million extension with Southern Water, and a £107million contract for IT services in Northern Irish schools. Capita is known for managing the London Congestion Charge scheme on behalf of Transport for London and running recruitment campaigns for the British Army. Mark Crouch, market analyst for eToro, said: 'Growth remains elusive, and competitive pressures in public sector outsourcing are intense. But with sentiment at a low base, Capita may now offer contrarian appeal. 'And with early signs of operational discipline and tech investment bearing fruit, investors may want to revisit this long-overshadowed name.' Capita shares were 4.6 per cent higher at 261p on Tuesday morning, taking their gains over the past year to approximately a quarter.
Free Malaysia Today
10-06-2025
- Business
- Free Malaysia Today
Petronas commits to staff welfare amid job cuts, pledges competitive separation scheme
Last week, Petronas announced that the company would reduce its headcount by more than 5,000 people as it looks to cut costs due to falling crude prices. PETALING JAYA : Petronas has reaffirmed its commitment to safeguarding employee welfare amid a company-wide restructuring exercise that will cut about 10% of its workforce, including by offering competitive separation packages. The firm said that to support employees affected by this exercise, a comprehensive transition programme had been put in place, ensuring that every decision is made with fairness, respect, and professionalism. 'Impacted employees will receive a market-competitive separation package – one that exceeds the minimum statutory requirement,' it said in a statement. The energy producer also said that beyond financial support, affected employees would also receive emotional support services, career coaching and job search assistance, financial planning guidance, as well as access to programmes for medical assistance, upskilling, and reskilling. 'The packages and benefits are structured based on employees' years of service and may vary depending on employee category and eligibility,' it added. Last Thursday, Petronas president and group CEO Tengku Muhammad Taufik Aziz announced that the company would reduce its headcount by more than 5,000 people as it looks to cut costs due to falling crude prices. He said those affected would be informed in stages through next year and that a hiring freeze would remain in place until December 2026. Petronas today said it had formed a transition council and people development committees to facilitate talent mapping and ensure that placement decisions are made collectively, guided by established platforms. 'This process also follows the necessary legal requirements and adopts the required industrial relations practices,' it said. The firm added that it had engaged with the relevant departments on labour and industrial relations under the human resources ministry to ensure compliance with statutory requirements. Petronas is also collaborating with the Social Security Organisation through MyFutureJobs to explore placement opportunities for eligible affected employees in other sectors. The potential placement of affected staff with various other GLCs, including oil and gas companies, is being explored, Petronas said. 'Additionally, the company's entrepreneurship programme run under the Petronas Innovation Garage offers a guided pathway into business ownership for those exploring alternative career paths.'
Free Malaysia Today
05-06-2025
- Business
- Free Malaysia Today
Petronas to cut 10% of workforce after profits slump
Petronas president and group CEO Tengku Muhammad Taufik Aziz said the company would also freeze promotions and hiring until December 2026. KUALA LUMPUR : Petronas will cut about 10% of its workforce in a company-wide restructuring as it looks to reduce costs due to falling crude prices and market volatility that have impacted its profits. Malaysia's state-owned oil firm will reduce headcount by upward of 5,000 people, Petronas president and group CEO Tengku Muhammad Taufik Aziz said in a briefing here today. It will also freeze promotions and hiring until December 2026, he said. Petronas's profits slid 32% in 2024 following a 21% drop in 2023. The challenges are slated to continue this year, in part due to a continued decline in Brent crude prices.
Bloomberg
05-06-2025
- Business
- Bloomberg
Malaysia's Petronas to Cut 10% of Workforce After Profits Slump
Petroliam Nasional Bhd. will cut about 10% of its workforce in a firm-wide restructuring as the company looks to reduce costs due to falling crude prices and market volatility that has impacted its profits. Malaysia's state-owned oil firm will reduce headcount by upward of 5,000 people, Petronas Chief Executive Officer Muhammad Taufik said in a briefing in Kuala Lumpur on Thursday. It will also freeze promotions and hiring until December 2026, he said.
