Royal Mail is losing £ 1 million a day, its president has revealed.
The business recorded an adjusted operating loss of £ 92 million between April and June, the first financial quarter.
President Keith Williams blamed the fall on declining package volume and the lack of progress on “efficiency delivery.”
Mr Williams said: “The pandemic boom in package volumes reinforced by the delivery of kits and test packages (COVID-19) is over.
“Royal Mail is currently losing £ 1 million a day and the efficiency improvements needed for long-term success have stalled.”
Royal Mail’s revenue fell 11.5% to £ 1.8bn during the quarter, compared to the same period last year.
Revenue from the Royal Mail Group, which also includes the international arm GLS, fell 5.1% to £ 3bn.
It comes a day after more than 115,000 Royal Mail post workers voted in favor of the pay strike in what is expected to be the largest industrial action in Britain this summer.
The strike was supported by 97.6% of voters, with a turnout of 77%.
“I’m willing to talk about payment and change at any time”
Royal Mail CEO Simon Thompson said the dispute has prevented Royal Mail from introducing the changes it needs to meet its £ 350m cost-effectiveness program and added that “there is now a risk of £ 100 million “.
Thompson said, “I’m willing to talk about pay and change at any time. But they have to be both.
“When we spoke to the unions before, we said that productivity needed to be improved, but it has only moved forward.
“Without change, this will continue, and we obviously have concerns about the impact of yesterday’s CWU announcement.”
The company said other cost savings, such as infrastructure changes, are “on track,” but noted that COVID-19 absences will continue to be a problem.
“We can be a long-term success story”
The President, Mr. Williams said: “However, we can be a long-term success story.
“We have advantages of scale and scope and a solid balance sheet and asset base that are the foundation of a successful future.
“We must act now to move towards this future in the interests of all stakeholders, making the most of these benefits.”