£2.1m planned reduction in management and overhead costs

Group Chief Executive's Weekly Message

"As you are aware, we have significant Government funding cuts in the year ahead – a reduction of £13 million, equivalent to 20% of our funding."
24th February 2015

We have been considering measures to address this funding deficit and today we are announcing annual and recurring savings of £2.1million following an internal review of management overhead and administration costs.

These savings in annual expenditure will have no adverse impact on front line services and are a result of improved internal efficiencies and staff departures. They follow an internal review process and ongoing liaison with Department for Regional Development on the final budget.

We are now operating in a new challenging fiscal environment and we all need to ensure we continue to operate as efficiently as we can at all levels.

We are establishing a new senior leadership team and details of this will be briefed out through your line manager over the coming weeks. This new structure will see greater integration between bus and rail. Alongside this we will be seeking to identify smarter working practices in order to reduce our costs and make further efficiencies.

We are committed to delivering efficiencies which will have minimal impact on front line services and hence this is the first area where we have sought to deliver cost savings across the business.

We know changes like these can bring uncertainty but we will keep you informed as to how we plan to deliver them.

We have had much success over recent years as more and more people choose to travel by bus and train. We have seen record levels of passenger journeys and high levels of customer satisfaction and we need to maintain this focus on our customer and providing excellent quality services. This will ensure we are in the best place to continue to build on our achievements into the future.

David Strahan

Group Chief Executive