Royal Mail has announced that up to 2,500 roles will be cut as part of an organisational review.

The job cuts, which will affect head office and support function roles, will take place by the end of 2027. Around 130,000 people are employed by the postal service.

The company said it was undergoing a “significant transformation” as the business implements universal service reform and adapts to a rapidly-changing market.

Letter volumes have declined by more than 70 per cent since their peak while customer demand for faster and more convenient parcel delivery services continues to grow, it said.

Alistair Cochrane, chief executive of Royal Mail, said: “We have been working hard to reduce costs and simplify processes across all areas of the business as we transform to win in a very competitive market.

“These proposed changes remove duplication and allow us to invest further in the service we deliver for our customers.

“We are committed to treating everyone fairly and respectfully throughout this process, working closely with our trade unions.

“The proposed changes will not be easy, but they are an important part of building a stronger, simpler and future-ready Royal Mail for our customers and colleagues.”

The news comes as postal regulator Ofcom continues to investigate Royal Mail over its persistent failure to meet crucial delivery targets over the past year.

Under targets set by Ofcom, 90 per cent of first-class mail should be delivered the next day, and 95 per cent of second-class mail should be delivered within three days.

The group – whose owner International Distribution Services was bought last year by Czech billionaire Daniel Kretinsky – recently pledged to meet the Ofcom delivery targets by May 2027 as part of a plan to invest £500 million in the service over the next five years.

Last July, Ofcom gave postal reforms the green light to reflect steep declines in the number of letters being sent, allowing second-class letters to be delivered on alternate weekdays only.

Royal Mail expects to complete the rollout of the new model across all its 1,200 delivery offices by Christmas, after initially being delayed until it had reached agreement with trade unions.