The UK’s postal service outlines a major restructuring to tackle financial issues, with over 100 branches potentially closing, threatening more than 1,000 jobs.

The Post Office is preparing to announce a comprehensive “transformation plan” aimed at addressing its financial challenges, amid reports of significant job cuts and branch closures. The restructuring could see up to 115 loss-making branches shut down, with more than 1,000 employees at risk of losing their jobs, including staff based at the company’s headquarters.

Chairman Nigel Railton is set to present the plan at the Post Office’s London headquarters on Wednesday, where he will address postmasters, retail partners, and staff. The Post Office currently operates a network of 11,500 branches across the UK, with 115 of these being Crown Post Offices, which are situated in city centres and staffed by Post Office employees.

In a bid to cut long-term financial losses, the Post Office is exploring the possibility of closing these Crown Post Offices or converting them to alternative franchising arrangements. A spokesperson for the company noted that the new plan, which follows an earlier strategic review, aims to significantly increase postmasters’ share of revenue, improve the efficiency of the branch network, and enhance services for local communities. The plan also proposes a new operating model designed to ensure the Post Office remains sustainable in the future.

The government is reportedly involved in discussions with Railton regarding a potential shift in ownership, with the idea of transferring control of the network to thousands of subpostmasters across the country. A spokesperson for the Department for Business and Trade confirmed that talks are ongoing to place postmasters at the centre of the organisation and strengthen the Post Office network for its long-term survival.

These developments come in the wake of the Horizon IT scandal, in which hundreds of subpostmasters were wrongfully convicted of theft due to defects in the Post Office’s Horizon accounting system. Jonathan Reynolds, the business secretary, addressed the ongoing issues during a public inquiry into the scandal, stating that the business model of the Post Office needed significant reform to ensure postmasters receive fair remuneration for the services they provide.

Retail partners, including major chains like WH Smith, Tesco, Morrisons, and the Co-Op, manage about 2,000 branches within the network. Meanwhile, independent postmasters operate approximately 9,000 other locations, contributing to the diverse structure of the UK’s Post Office network.