The Royal Mail chief executive is to step down, parent firm International Distributions Services has announced.

As first reported by Sky News, Simon Thompson had been in talks to leave the company after his credibility was challenged by MPs who recalled him for questioning at the Business, Energy and Industrial Strategy (BEIS) committee.

The company said it was in “advanced stages” of appointing a new chief executive and Mr Thompson will remain with the business until 31 October as part of the transition.

The former state-owned company was locked into a bitter dispute with employee members of the Communication Workers Union (CWU) which ended last month.

The settlement of that dispute has been listed as a reason for Mr Thompson to leave now.

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“The changes we have made, the infrastructure we have put in place, and the agreements negotiated with our trade unions mean that Royal Mail now has a chance to compete and grow,” he said.

“That is what I have always wanted, and it is now the right time to hand over to a new CEO to deliver the next stage of the company’s reinvention.”

Mr Thompson took on the chief executive role just over two years ago in January 2021. Prior to his appointment he serves as a non-executive director of the board since 2017.

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