Royal Mail CEO Apologizes for Poor Performance, Promises Major Transformation by Christmas

Royal Mail's chief executive, Alistair Cochrane, has issued an apology for the postal service's recent poor performance, announcing what he described as the "biggest transformation in generations" set to be implemented across most of the network before Christmas.

Cochrane acknowledged that performance figures for the first three months of the 2026-27 financial year were not sufficient, with 85% of First Class letters arriving within a day, falling short of regulator Ofcom's 90% target. Second Class mail delivery within three days also missed the 95% target, achieving 91%.

"I want to acknowledge Royal Mail’s performance has not been good enough and to say sorry," Cochrane stated. "We want to do better and we are absolutely determined to do so."

The company is implementing significant changes to working arrangements, a move prompted by a dramatic decline in letter volumes, which have fallen from 20 billion to five billion annually, contrasted with growth in parcel deliveries. Cochrane reported that changes have already been implemented at 70% of Royal Mail's sites, with plans to extend these to most others before the holiday season.

While not guaranteeing that letter performance targets would be met by the Christmas peak, Cochrane emphasized the company's serious commitment to its Universal Service Obligation, which mandates delivering letters to every UK address at a uniform price. He also affirmed the company's dedication to ensuring staff are on "proper contracts with holiday and sick pay."

The business minister responsible for the postal service, Kate Dearden, echoed these sentiments, stating that the quality of service had been "not good enough." Cochrane’s apology followed a similar admission made by the company's owner, Czech billionaire Daniel Křetínský, to MPs in March.

However, the Unite union's CMA division, representing postal managers, expressed concern that Royal Mail's slim profits of £5 million on £8.4 billion in revenue for the year ending March could lead to further job losses if reforms are not rapidly enacted. Gary Sassoon-Hales, national chairman of Unite CMA, noted that letter volumes had decreased by another 10%, while parcel volumes increased by 7%. The addition of four million new addresses to delivery rounds has also raised operational costs.

Sassoon-Hales criticized Ofcom for contributing to "delay and uncertainty" and failing to recognize significant shifts in the postal services sector, which he believes has disadvantaged both customers and Royal Mail. He warned that escalating first-class postage prices indefinitely is unsustainable and suggested exploring increases for second-class mail, potentially with targeted discounts for vulnerable customers. The union also highlighted the need for improved staff retention, citing that approximately half of new recruits leave within a year due to the job's physical demands, and proposed initiatives like apprenticeships for young people not in employment, education, or training.

Further challenges cited by Unite-CMA include the impact of Brexit, which has resulted in a 37% reduction in international traffic due to customs bureaucracy. The union also called for a level playing field with competitors, urging that delivery workers should be classified as employees unless proven otherwise and that rival companies should not be permitted to offload unprofitable deliveries onto Royal Mail. Sassoon-Hales concluded that the aim is to "protect a national institution, secure decent jobs and rebuild a service in which customers can have confidence."