- Cliff Equity
- Posts
- 📈 Post Office Shake-Up: 1,000 Jobs at Risk
📈 Post Office Shake-Up: 1,000 Jobs at Risk
P&O's £47m Cutbacks
In partnership with
This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes
In today’s stories:
Post Office Shake-Up: 1,000 Jobs at Risk
P&O's £47m Cutbacks
Retailers Face Tax Squeeze, Shoppers Pay the Price
The summary: The Post Office is getting a bold makeover, aiming to boost sub-postmasters’ pay, streamline branches, and restore its reputation—just as it faces pressure from the Horizon scandal inquiry and hopes to fill the gap left by vanishing bank branches.
The details:
Branch shake-up incoming: The Post Office plans to close 115 loss-making branches, leaving around 1,000 workers in limbo while potentially passing these sites to third-party operators.
Tone-deaf timing: The Communication Workers Union (CWU) slammed the move as "immoral" given the ongoing Horizon IT scandal inquiry, which exposed years of wrongful sub-postmaster prosecutions due to faulty software.
New leadership, old woes: Interim chairman Nigel Railton aims to restructure the Post Office, promising better pay for sub-postmasters and £250m annually by 2030—though reliant on government backing.
Aiming for a comeback: Government ministers envision a brighter future for the Post Office, hoping it can help fill gaps left by bank closures, while improving pay and giving sub-postmasters a stronger voice.
Why it matters: The Post Office is undergoing a radical shake-up, with closures and restructuring aimed at financial survival, but it's hardly ideal timing as the Horizon scandal’s ugly truths continue to unfold. This overhaul, led by a new chairman, promises to put sub-postmasters back in the spotlight—if the government can cough up the cash. Meanwhile, ministers are eyeing the Post Office as a potential hero to replace shuttered bank branches, making sure it remains a beloved British staple instead of a bureaucratic relic.
An entirely new way to present ideas
Gamma’s AI creates beautiful presentations, websites, and more. No design or coding skills required. Try it free today.
The summary: P&O Ferries has stirred quite the storm with its bold cost-cutting shake-up, facing public backlash and government criticism, yet it’s pressing on with hopes that this “transformational journey” will finally steer it into profitable waters.
The details:
P&O Ferries spent a hefty £47m to sack 786 mainly British seafarers, swapping them out for non-European agency staff at rates as low as £4.87 an hour, sparking widespread outrage and even boycott threats.
Last month, P&O's parent company DP World flirted with pulling a £1bn UK investment after criticism from Transport Secretary Louise Haigh reignited the backlash.
Despite the eye-watering restructuring costs, P&O claims it’s all part of a "transformational journey," helping cut annual wage costs by £21m and pushing it closer to profit after losses of £375m last year.
Still knee-deep in debt, P&O was forced to sell and lease back one of its new ferries to cover a £76.9m loan, relying on a £365m lifeline from DP World to keep its fleet afloat.
Why it matters: P&O’s drastic cost-cutting shows the lengths some firms will go to stay afloat—even if it means replacing British seafarers with workers on shockingly low wages. The eyebrow-raising tactics have strained relations with the government and stirred public outrage, potentially denting P&O's reputation and future customer loyalty. Meanwhile, despite the "transformational journey" narrative, P&O remains financially strapped, relying on its parent company’s loans to keep its business buoyant.
The summary: With tax hikes and rising costs set to hit businesses hard, it’s a bit of a balancing act for retailers who might have to raise prices, while the government hopes it’s all for a fairer, stronger economy—let’s hope they’ve got their calculators out!
The details:
British businesses are bracing for a tax triple whammy: a 6.7% rise in the National Living Wage, a hike in National Insurance rates, and mounting business rates—leaving many to wonder how much more they can bear.
JD Sports chairman Andrew Higginson warns of inevitable price inflation, as retailers face soaring costs and have two choices: cut jobs and investment, or pass the price hike on to consumers.
Chancellor Rachel Reeves argues the tax increases are all about "building a fairer economy" and bolstering public services, though businesses fear they’ll be footing the bill in the form of dwindling profits.
Higginson cautions that without a phased approach, the government's well-intentioned wage hikes and tax bumps might actually harm workers if inflation keeps eroding their earnings.
Why it matters: With businesses facing tax hikes and rising costs, it’s looking like consumers might soon feel the pinch, as prices creep up faster than a squirrel on a caffeine high. While Chancellor Reeves insists it’s all in the name of fairness, retailers are caught between cutting jobs or passing the costs on to shoppers—talk about a rock and a hard place. If these increases aren’t phased in, it could end up being a case of “raising wages, but lowering standards” for everyone.
Trending stories
How would you rate today's edition: |