THE POST Office could scrap two in three jobs in a cost-cutting drive.

Some of the estimated £200million savings will be used to improve sub-postmasters’ pay, it was reported last night.

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A review — announced in the wake of the Horizon IT scandal — may see staff cut from 3,100 to around 1,000.

Roles at the London HQ could go.

Sub-postmasters, who run most of the 11,500 Post Office branches, will not be affected.

Similarly, posties – employed by Royal Mail – would not be affected.

But grants to rural Post Offices could be cut, raising the risk of closures.

The Post Office said the priorities of its interim chairman are “remediation for post-masters affected by the IT scandal” and boosting their income.

Its recommendations were currently under discussion with the government.

More than 900 sub-postmasters were wrongly prosecuted based on faulty data.