Royal Mail has announced plans for an organisational review that could result in up to 2,500 head-office and support jobs being removed by the end of 2027 as the postal company restructures its operations.

The proposed reductions will focus on management, administrative and support functions, rather than frontline postal workers and drivers. Royal Mail said the changes are expected to be achieved through natural attrition and voluntary redundancy, with no compulsory redundancies planned as part of the announcement.

The company said it is simplifying its organisation as it responds to a rapidly changing postal market. Letter volumes have fallen by more than 70% from their peak, while demand for parcel services and faster delivery options has increased.

Royal Mail said the restructuring is intended to remove duplication, reduce costs and allow greater investment in customer service. Chief executive Alistair Cochrane described the programme as part of efforts to create a “stronger, simpler and future-ready” business.

The proposed cuts represent less than 2% of Royal Mail’s workforce of more than 131,000 people. The company has begun consultations with trade unions, including the Communication Workers’ Union and Unite CMA.

The announcement comes as Royal Mail continues to adapt to changes in the UK postal market and reforms to its universal service arrangements, following a long-term decline in traditional letter deliveries.