We have failed to reduce our costs fast enough as business has declined

Graham Cater, Chairman, Consignia Advisory Board, Wales

Two of Wales's six Parcelforce offices are to close, at Wrexham, with the loss of 75 jobs, and Pontypridd, with 76 jobs losses. A further 40 posts will be lost on mail trains out of Wales.

Around 450 of Parcelforce's 11,700 employees are in Wales - those affected will be offered the opportunity to continue as owner-drivers.

Post office unions have also agreed to 40 staff at the firm's bulk mail operation in Cardiff either moving to Bridgend or taking redundancy, Consignia said on Monday.

The BBC has learnt Consignia is set to announce 40,000 job losses overall as part of its rescue plan.

The redundancies account for almost a fifth of the former Post Office's workforce and are far in excess of previous predictions that around 12,000 jobs would go.

More mail is to be moved by train rather than road

Consignia is also likely to close more than 3,000 urban post offices and change its name back to the Royal Mail, as part of a major shake-up aimed at cutting costs and ensuring the company's survival.

As part of its cost-cutting plans, the firm also plans to axe a number of delivery vehicles in its fleet and move more mail by train.

Unions have called on Consignia to avoid compulsory redundancies by working with them to find alternatives.

Labour MP for Preseli Pembrokeshire Jackie Lawrence has called on the government to sack the management of Consignia over its handling of the organisation.

MPs are to consider a motion which claims Consignia is "treating Wales as a second-class area of the United Kingdom" in some of its recent decisions.

Up to 3,000 urban post offices may be closed

Plaid Cymru said the job losses would lead to price rises and the further deterioration of postal services in Wales.

The party also re-iterated its call for an independent review into the running of Consignia, including the need for a national postal service for Wales.

Elin Jones AM, the party's economic development spokeswoman, said: "In other countries where competition has been introduced it is common to see differing prices between rural and urban areas.

"The National Assembly should be demanding that the present high standard of our postal services are not compromised and are available to everyone, regardless of where they live, at a uniform cost."

Graham Cater, Chairman, Consignia Advisory Board Wales, said: "Parcelforce Worldwide is losing �15 million per month as we have failed to reduce our costs fast enough as business has declined.

"We need to renew our operations and halt the financial losses which put key services at risk."