Royal Mail chief Back steps down as board promises more change

German businessman Rico Back stood down as Chief Executive Officer of Royal Mail on Friday after two years in the charge marked by battles with unions over efforts to restructure the former UK postal monopoly.

The company said Back, who founded and ran the company's German arm GLS for almost three decades before taking over as group chief in 2018, had agreed with the board to step down with immediate effect and would leave the company on Aug. 15. Non-executive chairman Keith Williams has been appointed interim executive chair of Royal Mail Group and tasked with leading talks with stakeholders about an "accelerated pace of change across the business", the company said, until a permanent CEO is appointed.

Rico Back had promised a 1.8 billion pound ($2.20 billion) program last year to transform Royal Mail into a sustainable, profitable operation by 2024. That turnaround plan has since been delayed by labor unrest and the uncertainty caused by the coronavirus crisis.

"I look forward to seeing Royal Mail transform into a parcels-led, international delivery company," Back said. The company also said on Friday that its UK letters business saw revenue fall 22 million pounds year on year in April while costs rose 40 million, driven by overtime and agency resource costs due to coronavirus-related costs.

It said it would provide another update on measures to put the UK business on a sustainable long-term path along with full-year results on June 25. ($1 = 0.8194 pounds)

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