Royal Mail announced the departure of chief executive Emma Gilthorpe, just weeks after the company was acquired by Czech billionaire Daniel Kretinsky in a £3.6 billion takeover. Gilthorpe, who took on the role just over a year ago after joining from Heathrow Airport, has stepped down in a broader leadership shake-up within the company’s parent group, International Distribution Services (IDS). She will be replaced on an interim basis by Alistair Cochrane, Royal Mail’s current chief operating officer.

The change in leadership comes as Royal Mail faces mounting pressure to reform its universal service obligation (USO) amid ongoing financial challenges and regulatory scrutiny. In the year ending March 2024, Royal Mail reported a loss of £348 million and failed to meet delivery targets for the third consecutive year, prompting potential enforcement action from Ofcom. Negotiations continue over plans that would reduce the frequency of second-class deliveries and adjust key performance targets in response to shifting mail volumes.

EP Group, now the owner of Royal Mail, is making its influence felt with a string of boardroom changes and strategic hires, including former UK government minister Greg Hands as an adviser on regulatory matters in the UK and Germany. Discussions are also underway with the Communication Workers Union (CWU) over pay, conditions, and guarantees tied to USO reforms. The company aims to reach initial agreements by September, with further milestones set for the end of the year.