Thousands of jobs are at risk as the Post Office is considering cutting two-thirds of roles in a bid to reduce costs.
More than 2,000 positions could be axed under one proposal being reviewed by the scandal-hit Government-owned company.
The move, which would take staff numbers from 3,100 to 1,000, would reduce costs by around £200million.
And the plans, which are currently under discussion with ministers, have fuelled fears that more Post Office branches could close across the country.
It comes after Post Office interim chair Nigel Railton – who has been tasked with leading a turnaround of the embattled business – launched a strategic review earlier this year, with several recommendations under consideration.
The organisation was plunged into crisis by the Horizon IT scandal, which saw innocent workers accused of stealing thousands of pounds due to errors caused by a faulty computer system.
The wrongful prosecution of more than 900 people between 1999 and 2015 has been described as the biggest miscarriage of justice in British legal history.
The revelation that thousands of jobs are at risk comes as Post Office chief executive Nick Read, who will step down next year, will be grilled at the Horizon Inquiry today in the first of three days of questioning.
Some of the cost savings would be used to improve the pay of sub-postmasters – the independent operators that run most branches and are at the centre of the Horizon IT scandal.
Sub-postmaster jobs are not thought to be at risk under the cost-cutting plan, according to The Telegraph, which first reported the potential job losses.
But workers directly employed by the Post Office at its 117 Crown branches and at the organisation’s central London headquarters could be affected if the plans get the go-ahead.
A Department for Business and Trade spokesman said: ‘The future of the Post Office is crucial for customers, postmasters, business and communities, helping to drive growth across the country.
‘The Post Office interim Chair, Nigel Railton, has commissioned a wide-ranging, independent review regarding its future direction and a number of recommendations are currently under discussion.’
A Post Office spokeswoman said that Railton’s strategic review is looking at the sustainability of branches.
While a number of options are under consideration, the final decision is expected to result in some job losses.
‘[Railton] has been clear from the outset that remediation for Postmasters affected by the IT scandal and providing postmasters a higher revenue share are his priorities,’ she said.
‘A range of recommendations are currently under discussion with the government, and we are engaging with bodies representing Postmasters as these discussions continue.’