International Distribution Services has delayed the wider rollout of its plan to stop Saturday second-class letter deliveries until early 2026. The owner of Royal Mail had initially received approval from regulator Ofcom to implement the changes from the end of July.
The company is currently testing the reforms at 35 delivery offices out of a total of 1,200 locations. Chief Executive Martin Seidenberg previously described the reforms as a "massive task" and emphasized the need to "take the time to get this right."
Financial pressures mount
Royal Mail faces significant cost increases ahead. The company warned of a "backdrop of rising costs and macroeconomic pressures which are expected to continue into 2026." National insurance contribution increases alone will cost around £120 million, alongside increased wage costs and global trading complexities.
The company's half-year results showed mixed performance. Revenue rose 1.5% to £3.98 billion, with the parcels business up 3.2% but letters revenue down 0.4%.
Christmas preparations underway
Royal Mail is preparing for the busy festive season by hiring 20,000 temporary workers and adding 7,000 new vans to its fleet. Seidenberg said: "We never underestimate the important role we play at Christmas and we are hiring more people, opening temporary parcel sorting centres and putting more vans on the road to deliver for our customers again this year."
The company opened four seasonal parcel sorting centres, adding 118,000 square metres of extra space. Last month, Ofcom fined Royal Mail £21 million for missing delivery targets. The regulator has since lowered the first-class target from 93% to 90% and the second-class target from 98.5% to 95%.
Note: This article was created with Artificial Intelligence (AI).
