Royal Mail chief executive Simon Thompson resigns | Business News

The Royal Mail chief government is to step down, dad or mum agency Worldwide Distributions Companies has introduced.

As first reported by Sky News, Simon Thompson had been in talks to depart the corporate after his credibility was challenged by MPs who recalled him for questioning on the Enterprise, Vitality and Industrial Technique (BEIS) committee.

He was accused of giving “inconsistencies” in evidence earlier than the committee.

The corporate stated it was in “superior phases” of appointing a brand new chief government and Mr Thompson will stay with the enterprise till 31 October as a part of the transition.

The previous state-owned firm was locked right into a bitter dispute with worker members of the Communication Staff Union (CWU) which ended last month when an settlement on pay and employment phrases was settled.

The settlement of that dispute has been listed as a purpose for Mr Thompson to depart now.

“The adjustments we have now made, the infrastructure we have now put in place, and the agreements negotiated with our commerce unions imply that Royal Mail now has an opportunity to compete and develop,” he stated.

“That’s what I’ve at all times wished, and it’s now the best time handy over to a brand new CEO to ship the subsequent stage of the corporate’s reinvention.”

Mr Thompson took on the chief government function simply over two years in the past in January 2021. Previous to his appointment he served as a non-executive director of the board since 2017.

He thanked his crew for his or her help in what he acknowledged was a “troublesome and vital time of change”.

Royal Mail’s proprietor, Worldwide Distributions Companies plc (IDS), additionally owns Amsterdam-based logistics firm Normal Logistics Programs.

The postal supply firm had been beneath strain to implement modernising reforms after reporting millions of pounds of losses.

In October it introduced a course of to make 5,000 to 6,000 roles redundant by August.

The monetary hit of business motion was estimated to have value £200m within the first 9 months of IDS’s monetary yr to the top of December.

However the CWU normal secretary laid the blame on Mr Thompson.

“Simon Thompson is among the key people liable for the monetary disaster that Royal Mail Group has created over the course of the final yr,” Dave Ward stated.

“The chief government was additionally one of many key individuals liable for the appalling mantra of ‘it is our enterprise to run’ – which noticed the employer overtly assault its personal workforce on a relentless foundation, together with creating a tradition of imposition and creating service high quality and USO [universal service obligation] failures on a scale which threatens the way forward for the corporate.

“Nonetheless, we recognise that the chief government was solely one of many senior management crew liable for the unacceptable actions and behaviours of managers throughout the UK all through this dispute. Additional change in Royal Mail group’s management crew is significant.”

Royal Mail was additionally topic to a disruptive cyber attack and reported a breach of customer data prior to now yr.