We haven't finalised numbers John Roberts, Consignia's chief executive

Consignia's Chief Executive John Roberts made the announcement as he spoke to the House of Commons Trade and Industry Select Committee today.

"We haven't finalised numbers. We could be looking at anything up to 30,000 redundancies," Mr Roberts said.

Mr Roberts said it is hoped the bulk of the cuts would be through natural wastage, voluntary redundancies and contracting out activities like cleaning and catering.

He also said many parcel routes would be franchised out.

Consideration would also be given, he said, to transferring mail from trains on to road and air transport.

Falling profits

Earlier this year Consignia announced a reduction of about 10,000 managers' positions with many of the staff affected to be moved to other jobs.

Consignia has been hit by falling profits and lost �281m in the first six months of this year.

It aims to cut costs by 15% by March 2003 in order to stay profitable and inline with competitors.

Bosses blame the losses on the rising popularity of e-mail and text messaging along with the current economic climate and the rail chaos since the Hatfield crash.

Other factors are also said to be the cost of installing post office computers, Parcelforce's losses and the autumn decision not to increase stamp prices.

But Mr Roberts refused to be drawn on whether the company's semi-privatised status had anything to do with its financial difficulties.

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