The Post Office has confirmed its plan to close 115 across Britain and cut up to 1,000 head office jobs in a major shake-up of its operations.
This comes amid widespread bank branch closures throughout the UK which has left many people concerned over the future of cash services.
Post Office chairman Nigel Railton made the announcement at the company’s headquarters in London on Wednesday in a speech to postmasters across the country, as well as retail partners and Post Office staff.
He said: “The Post Office has a 360-year history of public service and today we want to secure that service for the future by learning from past mistakes and moving forward for the benefit of all postmasters.
“We can, and will, restore pride in working for a business with a legacy of service, rather than one of scandal.”
He added the overhaul also “begins a new phase of partnership during which we will strengthen the postmaster voice in the day-to-day running and operations of the business, so they are represented from the frontline to the boardroom”.
Of the Post Office’s approximately 11,500 branches across the UK, only 115 are wholly centrally owned crown offices.
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It is understood the Post Office chairman is meeting with postmasters to discuss closures
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The vast majority are operated by independent postmasters and local businesses, with around 2,000 run by retailers such as WHSmith and Tesco.
The number of crown post offices has been steadily declining, down from nearly 400 in 2012.
The Post Office has stated it has no plans to reduce its overall network of 8,500 branches managed by independent postmasters, dismissing earlier reports that two-thirds of postmasters could lose their jobs.
Martin Quinn from Campaign for Cash said: “This is another nail in the coffin for communities who rely on the Post Office network for access to cash services.”
“The Government must immediately demand that this closure programme be stopped, and treat the Post Office network as national infrastructure,” he added.
The concerns come as Post Offices have become increasingly vital for many communities, particularly following the closure of thousands of high street bank branches since 2015.
In July, customers deposited or withdrew more than £3.7billion, setting a new record for cash transactions.
Whitehall sources have acknowledged the financial strain on the Post Office, noting that the institution would struggle to survive without annual Government subsidy.
Communities will see their local Post Office vanish from the high street
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Business Secretary Jonathan Reynolds expressed support for the Post Office’s long-term future but emphasised that “the structure of the business model has to change to be sustainable.”
The Post Office plans to redirect cost savings towards increasing postmasters’ pay and investing in automation, including note-counting machines and self-scanning tills.
The organisation intends to unveil enhanced remuneration terms for the franchisees who run 9,000 post office branches independently.
A Post Office spokesman said: “Tomorrow we will set out a ‘New Deal’ for postmasters and the future of the Post Office as an organisation.”
“It will dramatically increase postmasters’ share of revenues, strengthen our branch network and make it work better for local communities, independent postmasters and our partners who own and operate branches,” they added.
