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Royal Mail has announced it will begin a process to make 5,000 to 6,000 roles redundant by August next year.

The announcement, made in a trading update by the postal service’s parent company, has been blamed on industrial action taken by Royal Mail workers, delays in improving productivity and falling parcel volumes.

A process of “consulting on rightsizing” is to begin. Jobs are to be reduced by an estimated 5,000 full time roles by March 2023 and 10,000 by end of August 2023 to achieve short-term cost efficiencies, International Distributions Services plc said.

Based on current estimates, around 5,000 to 6,000 redundancies may be required by end of August 2023, it added.

More jobs may need to go, the company warned, if 16 days of strikes take place in November and December. It expects such action would “materially” increase the company’s loss for the year.

A voluntary redundancy scheme is to be offered in an effort to avoid compulsory redundancies but the company has said its traditional redundancy package of up to two years’ pay is no longer on offer: “The financial position of the business means that our legacy voluntary redundancy policy, which offered up to two years’ pay, is now unaffordable.”

The parent company reported a loss of £219m for the first half of this financial year, compared to a profit of £235m during the last financial year.

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Around £70m of that loss was attributed to “direct negative impacts” from three days of industrial action.

Members of the Communication Workers Union (CWU), who represents Royal Mail workers, had been engaged in strike action over pay and conditions.

Around 115,000 Royal Mail staff walked out over pay and conditions in what the CWU said is the biggest national strike of any sector this year. Up to twenty-one days are to be affected by the strikes.

Commenting on the announcement CWU general secretary Dave Ward said: “The announcement is the result of gross mismanagement and a failed business agenda of ending daily deliveries, a wholesale levelling-down of the terms, pay and conditions of postal workers, and turning Royal Mail into a gig economy style parcel courier.

“What the company should be doing is abandoning its asset-stripping strategy and building the future based on utilising the competitive edge it already has in its deliveries to 32 million addresses across the country.

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“The CWU is calling for an urgent meeting with the board and will put forward an alternative business plan at that meeting.

“This announcement is holding postal workers to ransom for taking legal industrial action against a business approach that is not in the interests of workers, customers or the future of Royal Mail. This is no way to build a company.”

International Distributions Services also owns GLS, a profitable international, Amsterdam based logistics company.

The parent company warned that it may separate the companies to prevent GLS subsidising the losses of Royal Mail.

GLS is on track to profit between €370 and €410m this financial year.

“In the event that significant change within Royal Mail is not achieved, all options remain open to protect the value and prospects of the group, including separation of the two companies,” the trading update said.

Royal Mail is expected to have a loss of around £350m, excluding voluntary redundancy costs. The sum may increase to around a £450 million loss if customers move business away for longer periods following the initial disruption.

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Customer details stolen in Renault UK cyber attack

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Customer details stolen in Renault UK cyber attack

Renault UK has become the latest car company to be hit by a cyber attack.

The firm said some customer personal data had been accessed during a breach of one of its third-party data providers, but that no financial information or passwords had been compromised.

A spokesman said this included “customer names, addresses, dates of birth, gender, phone numbers, vehicle identification numbers and vehicle registration details”.

It comes after Jaguar Land Rover (JLR) was forced to suspend production at its UK factories following a cyber attack on 31 August.

JLR said earlier this week that it planned to resume limited production “in the coming days”, but no firm date has been announced.

Renault UK said none of its systems had been compromised, and manufacturing has not been affected.

A spokesperson added: “The third-party [data] provider has confirmed this is an isolated incident which has been contained, and we are working with it to ensure that all appropriate actions are being taken. We have notified all relevant authorities…

“We wish to apologise to all affected customers. Data privacy is of the upmost importance to us and we deeply regret that this has occurred.”

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Renault UK confirmed it was in the process of contacting all customers affected and advised them “to be cautious of any unsolicited requests for personal information”.

It refused to say how many were affected “for ongoing data security reasons”.

Retailers, airports and even a nursery chain have been targeted by cyber criminals during a spate of online attacks in recent months.

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Furniture retailer Cotswold Company lays groundwork for sale

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Furniture retailer Cotswold Company lays groundwork for sale

The long-standing owner of The Cotswold Company, the premium furniture and homewares brand, is paving the way for a sale after retaining investment bankers to oversee discussions with potential buyers.

Sky News has learnt that True, the private equity firm, recently appointed Rothschild-owned Arrowpoint Advisory to formulate a long-term disposal plan.

Sources said an auction of the premium handcrafted furniture retailer was not imminent, but acknowledged True was expected to pursue a sale in the next couple of years.

The investor has owned the business since 2016.

News of the prospective sale comes two weeks after The Cotswold Company reported a 30% rise in sales in the six months to August 30.

It said the rise had been driven by strong momentum behind the brand, as well as improvements to its digital offering.

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The company has more than 250,000 active customers, and opened two new showrooms during the half-year period.

Ralph Tucker, The Cotswold Company’s chief executive, said it provided “alternatives to soulless and low-quality furniture”.

It recently recruited TV personality Will Kirk as its quality expert, which it hopes will cement its credentials as a seller of products known for their craftsmanship and sustainability.

True and The Cotswold Company declined to comment.

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Japan could be hours away from running out of Asahi

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Japan could be hours away from running out of Asahi

Japan could be hours away from running out of Asahi, the country’s most popular beer.

Dozens of factories nationwide have ground to a halt following a cyber attack on Monday.

The breach disabled the company’s ordering and delivery systems – and also took its call centre operations offline.

Supermarkets and Japanese pubs known as izakayas risk running super dry, with some retailers raising fears of potential panic buying.

Reuters file pic
Image:
Reuters file pic

According to NHK, Asahi Group has now had to suspend plans to launch new products including soft drinks, coffee and throat lozenges.

One wholesaler expects to run out of beer kegs by Saturday at the latest, meaning they’ll no longer be able to supply booze to retailers.

They are now considering whether to start selling other brands as a temporary measure.

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Akira Kudo, who runs an izakaya in Tokyo, has been told that one of the two brands of Asahi he regularly purchases is now out of stock.

He’s now unable to predict when pints can be poured again.

“We have received beer from the wholesaler to replace Asahi, but we would like to avoid using other manufacturers if possible, so we will consider our options until the very last minute,” Akira added.

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Reuters file pic
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Reuters file pic

A shortage may leave Japanese drinkers unimpressed. While there are other breweries in the country, Asahi has a fiercely loyal following.

Figures from Kirin Holdings suggest that the typical consumer drank 34.5 litres of beer a year in 2022, the equivalent of 54 large bottles.

Asahi executives are now consulting with the police and trying to determine whether the company has fallen victim to ransomware.

They have stressed that no personal information or customer data has been leaked.

Brewing operations outside of Japan – including in the UK – are also unaffected.

There have been a series of high-profile cyber attacks on well-known brands in recent months – including Marks and Spencer, the Co-op and Jaguar Land Rover (JLR).

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