Consignia was consigned to history today as the postal group announced 17,000 job cuts and record losses of £1.1 billion.

Bosses also signalled a 1p rise in the price of stamps.

Chairman Allan Leighton said the service was being "smashed" every time the name was mentioned so he decided to drop it from the end of the year, partly to boost workers' morale.

The group will be renamed Royal Mail at a cost of around £1 million. It cost £1.5 million to launch Consignia 15 months ago.

Mr Leighton said the company's position was "untenable" and warned it could go bust if changes were not made.

He said he was "embarrassed and angry" the company had been forced to axe so many jobs.

"It (the situation) hasn't happened overnight, that's for sure. The business has been heading this way for three or four years.

"First of all, management has made mistakes and people have to hold their hands up to that.

"Secondly, there's been too much infighting. Industrial relations up until recent times have been very poor.

"Thirdly, to a degree, there's been a lack of investment in the right things."

The 17,000 job cuts come on top of 13,000 previously announced and Mr Leighton admitted they would have a huge impact on communities across the country.

He pledged to try to achieve the cuts through voluntary redundancy or transfers but revealed that more workers wanted to apply for a pay-off, which he said reflected the poor state of morale in the organisation.

Chief executive John Roberts, 57, announced today that he would retire later this year after a successor is appointed.

The post office branch network will lose an estimated 30 per cent of its business next spring when benefits are paid directly into banks and the Royal Mail faces increased competition from rivals.

Mr Leighton said he was applying for the price of first and second class stamps to be increased by 1p, which he hoped would come into effect from the autumn.

The Communication Workers Union said it would not accept compulsory redundancies and called on management to justify every single job loss.

None of the main board members at Consignia was given a pay rise last year, it was revealed today.