Consignia: thousands more jobs may go

Consignia is refusing to rule out the possibility of axing thousands more jobs.

It says there is "more work to be done" to achieve its cost reduction target, but specific numbers have not yet been worked out.

The postal group, which is losing £1.5 m (€2.4m) a day, also says there is no time scale yet set out for the cuts.

The remarks come in response to newspaper reports that it plans to axe between 15,000 and 26,000 further staff as part of its three-year programme to save more than £1bn (€1.6bn).

But Consignia insists it has not yet worked out details of how many jobs would go or when, though it was likely to be thousands.

A spokesman said: "We are reviewing all aspects of our business and have already unveiled the first stage of a three-year renewal programme to cut costs by more than £1.2 bn (€1.9bn) and are focused on delivering that."

He added: "At this stage we have no details of job numbers involved or the precise time scale for this."

The group has also confirmed it has been holding talks with listed Dutch mail, express and logistics group TPG over forming a joint venture.

It is thought this could have included TPG taking a majority holding stake in the Royal Mail arm of Consignia.

But talks, which lasted several months, were terminated two weeks ago, and both sides said there were no plans to resurrect them.