The Post Office has warned staff that 150 staff are at risk of redundancy as part of plans to ‘simplify’ its structure to better support its postmasters.

A letter from chief executive Nick Read sent to staff on 16 September read: “We are taking this action now as part of our journey of resetting the Post Office as well as in response to the pressures we face from the coronavirus.”

A source close the CWU claimed the roles at risk were “mostly frontline managers” and that consultations were already underway with those affected. They described Nick Read’s statement as a ‘candid’ response to the fall in revenue from services such as travel exchange due to the crisis, and the need to change following the Horizon group litigation settlement.

The Post Office said the changes would help ‘reset’ its relationship with subpostmasters by creating a ‘simpler organisation’ that can provide more operational support for its partnered retailers. This included the appointment of a new chief operations officer, Dan Zinner. The role represents his third held at the Post Office this year, following an earlier reshuffle that saw him named ‘group chief strategy and transformation officer.’

In an earlier meeting with staff on 11 September, Read is said to have defended the Post Office’s shift towards greater support for its partnered stores. He said: “Our purpose focuses on Postmasters because they are the Post Office. They are the people running the majority of our branch network, and making personal connections with thousands of customers each day, and our role as Post Office Limited must be to help them be at their best for Post Office customers and the broader communities.”

Sources told RN the Post Office has also set up a ‘pledge wall’ where staff outline what they will do to better support postmasters.

A new business unit will also be created ‘to focus on Historic Matters.’ BetterRetailing understands that there have now been more than 2,000 claims lodged by current and former postmasters under the Historic Shortfalls Scheme – nearly 500 more than when the official claim deadline passed in early August. Letters sent to claimants by the Post Office and seen by Better Retailing read: “we envisage it could take several months for individual case outcomes to be reached and communicated.”

Nick Read, chief executive of the Post Office told Better Retailing: “Post Office needs to be a simpler organisation focused on helping postmasters to thrive; these management changes will help us be more effective and efficient in our support to them. For colleagues whose role is at risk, we will help them to find alternative roles where possible and provide them with the support they need.”

A letter sent from the CWU to branches claimed the consultation on 150 staff involved 41 proposed job losses on admin and supply chain roles represented by the union and a further 110 proposed job losses in managerial positions.

The ongoing consultations affect an estimated 3% of the Post Office’s total workforce. Read’s statement to staff listed affected busines areas as supply chain, commercial, people, marketing, corporate affairs and communications.