Co-op Announces Job Cuts Amid Widening Half-Year Losses

The Co-operative Group reported underlying operating losses of £45 million for the six months ending July 4, an increase from the £32 million loss recorded the previous year. Pre-tax losses also rose to £92 million, up from £75 million in the prior year. The mutual attributed the decline to weak consumer confidence and £78 million in additional costs, including higher employer National Insurance contributions.

To secure long-term financial stability, the company is implementing a £200 million cost-cutting program that includes reducing its workforce. Interim chief executive Kate Allum stated the plan involves both the removal and creation of roles, though she declined to specify the total number of job losses. These financial pressures follow an April 2025 cyber attack that reduced first-half revenues by £206 million and profits by £80 million.

Despite the losses, group sales rose 2.4% to £5.6 billion, with food store sales increasing 2.6% and the UK convenience market share growing to 13%. The company is also pursuing a takeover of Southern Co-op, a deal currently under investigation by the Competition and Markets Authority.

The financial results follow a management shake-up triggered by allegations of a toxic work environment, leading to the departures of chairwoman Debbie White and managing director Matt Hood. Allum expects a stronger second-half performance driven by growth in funerals and online convenience shopping.