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Ideas Farm: Should investors welcome job cuts?

It feels like a question worth asking, if indeed a deep recession is coming
Ideas Farm: Should investors welcome job cuts?Published on October 20, 2022
  • As Royal Mail announces job cuts…
  • …shareholders cut holdings
  • Lots of idea-generating content…

On Friday, at the top of a bulging sack of updates, the business formerly known as Royal Mail plc gave notice of plans to cut up to 10,000 jobs, in a bid to slash overheads and reverse mounting losses in its core UK business.

This isn’t new ground for International Distributions Services (IDS), as the company is now styled. In 2020 it announced one in five management jobs would go as part of a transformation programme. Prior to last week’s intervention, it was already locked in a dispute with the Communication Workers Union (CWU) over pay, working conditions and strategy.

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