Co-op reveals job cuts as part of plans to save £200million after its losses deepen

Co-op reveals job cuts as part of plans to save £200million after its losses deepen Co-op, which operates nearly 2,400 food stores, saw its underlying pre-tax losses jump to £92million for the six months to July 4, up from £75m a year ago, when it was hit by a cyber attack The Co-op has revealed it will cut jobs as part of wider plans to save £200million after its losses deepened. The company, which has around 2,400 food stores across the UK, saw its underlying pre-tax losses jump to £92million for the six months to July 4, up from £75million a year ago, when it was hit by a cyber attack. Its first half losses deepened to £86million from £50million a year earlier. Interim chief executive Kate Allum has not confirmed how many jobs would be axed, but said it was “not just about jobs going but also being created”. The Co-op employs around 54,000 workers and, in addition to the supermarkets, has approximately 800 funeral homes across the UK. In its latest financial results, the Co-op said it has been hit with £78million in extra costs, including higher employer National Insurance costs. It said consumer confidence has also weakened. The Co-op said its latest half-year saw sales rise 2.4% across the group, while sales at its food stores were up 2.6% - but this is compared with a year earlier when the cyber hack in April 2025 knocked revenues by £206million and profits by £80million. The group said food sales growth was at least 2.6% into the second half and back to pre-cyber attack volumes thanks to investing in promotions including its Aldi price match. Ms Allum said: “The first half was characterised by difficult markets and low consumer confidence, especially for food retail. Against those conditions, we made decisions to drive trade – investing in promotions and investing in our stores – while also mitigating rising costs.” She said trading was turning around, with shoppers spending more and visiting its food stores more frequently, but said there was “more work to do”. Ms Allum added: “Conditions remain challenging, but we see reasons for confidence across our portfolio, having delivered strong growth in areas such as online convenience shopping and funerals. “We expect to see a stronger performance in the second half than the first, with sales growth and improvements in profitability.” The group is also moving forward with a planned takeover of smaller rival Southern Co-op. The deal would add 330,000 members to its existing seven million members, as well as about 300 food, funeral and Starbucks coffeehouse sites. The Competition and Markets Authority is investigating the deal. The firms had until September 22 to put forward measures to resolve any potential competition issues or face the next stage of its investigation.