In a live interview with Breakfast's Declan Curry, Consignia's chairman Allan Leighton said one third of his top management would go.

He's also going to scrap the second delivery, which he described as "completely nuts".

"This is not something that any organisation should be proud of," he said.

"It's going to be very hard, but today is going to be the beginning of the recovery - and hopefully the end of the demise."

click here to see Allan Leighton's interview in full

Background

Industry experts say job losses could total 17,000 across the postal service.

That's on top of thousands of other job losses already announced at the parcels and other operations.

It is also expected to announce plans to axe the companies controversial name and restyle the group as the Royal Mail.

Since becoming Consignia over a year ago opposition to the name has grown and the Communication Workers Union (CWU) recently launched a drive to call the service simply the Post Office.

Strike threat

Government funding for Consignia's restructuring is also expected to be agreed on Thursday.

The postal group is losing around £1.5m a day and faces increased competition from rival firms after the industry's regulator decided to open up the market.

In addition, the company could also be facing the threat of a national strike over jobs.

The CWU dispute involves plans to outsource the company's facilities services business Romec, which is responsible for maintenance of the company's 3,000 buildings.

The plan would save Consignia £60m a year, but the union fears it could be the start of privatising parts of the service.

Union sources said Consignia had been warned that if the plan goes ahead, an industrial action ballot will be held among 200,000 workers.

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