Chairman of British Royal Mail claims the company is losing £1 million per day.
In a bid to cut the costs Royal Mail is set to axe Saturday postal deliveries.
Parcel deliveries would continue on the weekends, but the company spokesperson says 97% of consumers would find a five-day letter delivery service acceptable.
This comes as 97.1 % of Royal Mail emloyees voted in favour of strike action over pay and conditions, amounting to 115,000 staff members.