Royal Mail's UK post and parcels head ousted
By Iain Gilbert
Date: Wednesday 07 Nov 2018
(Sharecast News) - Just weeks ahead of the crucial festive period, the head of Royal Mail's UK post and parcels division has departed after a dozen years in the role.
Sue Whalley will leave the group with immediate effect and her responsibilities will be divided up between chief executive Rico Back and chief financial officer Stuart Simpson.
"The board have agreed that she will leave Royal Mail," the company said.
"Sue will work alongside Stuart Simpson on our Christmas operational programme and assist the company with ongoing regulatory, legal and other matters, as appropriate."
A senior executive will be appointed to support Simpson's operational work on post and parcels.
Royal Mail also revealed it had promoted non-executive director Keith Williams to the deputy chairman role with immediate effect.
Williams, who was the head of its audit and risk committee, is "in the process of reviewing his external commitments" as part of an effort to fully focus on Royal Mail.
Royal Mail assured shareholders Williams, who was executive chairman of British Airways until 2016, had "a very strong track record in operational transformation, digital strategy and industrial relations, including pensions."
Analysts at Liberum saw Williams' appointment as a "reaction to the group's recent profit warning, which was driven mainly by poor productivity improvements at the UK business."
"However, despite the change of leadership of that division, it still faces significant challenges from margins being squeezed by a stagnant top line on one side and cost inflation, wage increases and a shorter working week on the other," said Liberum.
Back in October, Royal Mail shares tumbled almost a third to its lowest point since 2013 following a profit warning.
"Following all we have done to move the organisation forward in recent years and to implement change to position Royal Mail as a leader in e-commerce, now is the time to move on," said Whalley.
As of 0935 GMT, Royal Mail shares had ticked up 1.98% to 360p.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN