Nick Read, the troubled chief executive of the Post Office, is due to step down next year.
Reid is due to give evidence at the state-run Horizon IT scandal inquiry in October but had already temporarily stepped down from his role in July to “devote his full attention” to preparing for his testimony.
Neil Brocklehurst will take over day-to-day running of the company as interim chief executive. Read's resignation was first reported by Sky News.
The Post Office Horizon IT scandal saw hundreds of postal workers wrongly charged with theft and false accounting due to insufficient funds in branch accounts. It was later revealed that the discrepancies were caused by an IT bug in Post Office Horizon's computer system. Former Chancellor Rishi Sunak described it as “one of the biggest miscarriages of justice in our country's history”.
The Postal Service's public inquiry into the missteps that led to the agency's scandals is set to begin its seventh round of hearings, examining current practices, with Reed due to testify over three days starting Oct. 9.
The Postal Service said it will begin the process of appointing a new chief executive officer to succeed Reid when he retires on March 15, 2025.
Interim chairman Nigel Railton said: “This has been a challenging time for the Post Office and the Postmaster General but Nick has played a key role in leading the way through this difficult period and in beginning this important process of cultural change.”
Mr Reid said: “It has been a great privilege to work alongside my colleagues and the postmaster general over the past five years through some incredibly challenging times.”
He took over as chief executive in September 2019 with a mandate to modernise the organisation, succeeding Paula Vennells, who was stripped of her CBE in February following public outrage over her handling of the Horizon crisis.
Mr Reid led the settlement of a High Court case brought by campaigner Sir Alan Bates and 554 postal service employees against the Post Office in late 2019. The case exposed flaws in the Horizon IT system and paved the way for the wrongful convictions of hundreds of employees to be overturned.
Reid's tenure has been dominated by scandal and embroiled in controversy. Last year he returned bonus payments linked to the hearings and apologised for the company's “procedural and governance failings”.
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He promised to reform the Post Office and “right the wrongs of the past,” but in March the Post Office Business and Trade Committee Lawmakers expressed a lack of confidence They questioned his leadership and accused him of presenting misleading evidence.
In April, Reid “He was cleared of all charges of wrongdoing.” Following an investigation into bullying allegations.
The Department for Business and Trade said: “Providing prompt compensation for wronged postmasters and ensuring a sustainable future for the Post Office is this Government's top priority.”
“We will work closely with interim CEO Neil Brocklehurst to ensure the Post Office delivers for postmasters and their communities.”
