CO-OP CUTS JOBS AFTER LOSSES WIDEN AMID NATIONAL INSURANCE RISE

The Co-op is cutting jobs as part of a plan to save £200 million, after reporting widened losses for the first half of the year. Interim chief executive Kate Allum said the reductions were needed to offset rising costs, including an increase in employer national insurance contributions introduced in Labour's 2024 Budget that she said had pushed the group's annual bill from £100 million to £150 million. Allum declined to say how many of the Co-op's 54,000 staff would be affected. She said the changes were "not just about jobs going but also being created".

The mutually owned group, which runs more than 2,300 food stores and 800 funeral homes, posted underlying pre-tax losses of £92 million for the six months to 4 July, up from £75 million a year earlier. Statutory losses deepened to £86 million from £50 million. The Co-op cited weak consumer confidence and £78 million in extra costs, including higher labour taxes. Group sales rose 2.4 per cent, with food store sales up 2.6 per cent. The prior-year figures had been hit by a cyber attack in April 2025, which cut first-half revenues by £206 million and profits by £80 million.

Allum said the group had fast-tracked automation, including rolling out electronic shelf-edge labels to all 2,300 stores, which reduced the burden on staff. She said any reduction in employment had come through natural staff turnover rather than large-scale cuts. The Co-op has seen a management shake-up, with former chief executive Shirine Khoury-Haq stepping down in March, chairwoman Debbie White departing in August, and managing director Matt Hood leaving over the summer. The retailer has also had to respond to claims of a "toxic" workplace environment.