Co-op announces job cuts amid £200m cost-saving plan and widening losses

The Co-op has announced staff redundancies as part of a £200 million cost-saving initiative following a period of widening financial losses. For the six months ending July 4, the mutual reported underlying pre-tax losses of £92 million, an increase from the £75 million reported the previous year.

The company attributed the financial difficulties to weak consumer confidence and £78 million in additional expenses, including higher labor taxes. The business is also recovering from the impact of a significant cyber attack in April 2025, which previously impacted revenues and profits.

Interim chief executive Kate Allum stated that the cost-cutting measures are intended to offset higher overheads and ensure long-term stability. While specific numbers regarding the impact on the company’s 54,000 employees were not provided, Allum noted that the plan involves both job reductions and new role creation.

Despite the losses, the group reported a 2.4 per cent increase in sales across its operations, which include over 2,300 food stores and 800 funeral homes in the UK. Food store sales specifically rose by 2.6 per cent. The period has also been marked by significant leadership changes, including the departures of former chief executive Shirine Khoury-Haq, former chairwoman Debbie White, and managing director Matt Hood.