UK post delivers 17,000 job cuts

UK post office loses more than £1 million a day

LONDON, England -- Consignia, Britain's struggling postal operator, said on Thursday it would axe 17,000 jobs after posting a £1.1 billion ($1.62 billion) loss.

The 365-year-old company is slashing jobs and costs in a bid to return to profitability as it faces more competition from next year. It also plans to change its name back to Royal Mail Group, 15 months after it spent £500,000 on rebranding as Consignia.

Consignia, a name Chairman Chairman Allan Leighton said he did not like and would ditch, had been widely expected to announce more job cuts after slashing 15,000 jobs at its parcel, transport and services operation over the next three years, to save £460 million.

Chief Executive John Roberts, who has been blamed for the financial crisis, is to retire once a successor is found, the postal company said. Media reports had speculated Roberts would lose his job as the company lost more than £1 million a day.

MORE STORIES • Consignia to cut 15,000 jobs  • Consignia to cut up to 30,000 jobs

Roberts joined the post office in 1967 and became chief executive in 1995.

The latest round of job losses come at its Royal Mail delivery business, which is expected to see stiff competition from rivals like Dutch postal opertor TNT Post Group, Britain's Hays and Business Post Group.