The review involves a six month consultation involving trade unions and staff members.
Around 440 staff members currently work at the mail centre in Castle Foregate.
A spokeswoman for Royal Mail said: “Royal Mail is reviewing its processing operations as part of a wider, ongoing review of mail centres across the UK.
“Royal Mail needs to respond to the huge growth in electronic communications and the resulting decline in overall mail volumes.â€
Royal Mail say it has also been hit by increasing competition from a growing number of private operators.