Bosses announced 1,600 job losses at newly privatised Royal Mail yesterday in a bid to drive up profits.

Royal Mail, which was publicly owned until last October, said axing the posts was part of a plan to cut spending by £50 million a year.

It claimed that 300 other positions would be created and the cuts wouldn't affect sorting and delivery workers.

Chief executive Moya Greene - who is paid £1.5 million a year - claimed that axing jobs was needed "to effectively compete in the letters and parcels markets."

But the Unite union, representing Royal Mail managers, slammed the company for "ruthlessly sacrificing jobs" and warned of industrial action.

The reckless cuts were to be expected now that privateers controlled the post, the union pointed out.

"First the government sells off Royal Mail on the cheap and now the newly privatised service is ruthlessly sacrificing jobs," Unite Royal Mail officer Brian Scott said.

"We do not believe that it's a coincidence that this announcement has been made just before the company prepares to announce its first full set of accounts since privatisation.

"It's more proof that Royal Mail's primary reason for existing is now about making profits rather than serving the nation.

"For all that Royal Mail managers have been through they do not deserve to be treated in this way."

Mr Scott said Unite members may strike if Royal Mail chiefs force compulsory redundancies on them.

"If Royal Mail refuses we will have no alternative than to consider a ballot for industrial action."

The Communication Workers Union (CWU), which secured 130,000 workers a 9 per cent pay rise and legally binding employment protections during the sell-off, said the job cuts were "deeply concerning."

Deputy general secretary Dave Ward said: "Royal Mail's plan to cut 1,600 staff would see major changes to the company.

"We understand that the majority of these job losses will mainly be head office managerial staff rather than postal workers but we will fight to protect as many jobs as possible."

And shadow minister for trade and investment Ian Murray pointed out that the job losses came amid reports that Ms Greene could be in line for a bumper payout, rubbing "salt into the wound.

"Cameron's Royal Mail fire-sale last year lost the taxpayer hundreds of millions of pounds and put the future of vital services at risk," he said.

"We are clear that the government needs to use its remaining stake in the business to promote fairness and a long-term approach."