The Post Office has revealed plans to offload its last remaining directly owned branches, putting around 1,000 workers at risk.

It confirmed that a total of 108 crown branches, which are currently directly owned and run by the company, will be handed over to franchisees by autumn.

This could see the sites taken over by large franchising businesses or postmasters themselves.

It is understood the Post Office expects the majority of these branches to continue running at their current sites, but that some of these could face closure as franchises are moved to different premises, affecting staff.

The move is part of efforts by the Post Office to generate cash to help it increase pay for postmasters.

It comes after the organisation, which has undergone a significant overhaul since the impact of the Horizon IT scandal when hundreds of subpostmasters were wrongfully convicted, announced a review of the branches late last year.

Around 1,000 workers are employed across the branches.

Post Office chairman Nigel Railton said: “Moving to a fully franchised network is one part of enabling the Post Office to deliver a New Deal for Postmasters, helping to create a long-term, sustainable future for the Post Office.

“By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40 million worth of savings that will enable us to uplift postmasters’ remuneration by up to 10%.”