Key facts
- The Co-op is cutting jobs to save £200 million.
- The retailer reported losses of £92 million for the six months to July 4.
- The Co-op incurred £78 million in additional costs, including employment taxes.
- Labour's increase in national insurance contributions is cited as a factor.
- Interim chief executive Kate Allum declined to specify the number of staff affected.
The Co-op is implementing job cuts as part of a £200 million cost-saving initiative, attributing the decision to widening losses and increased expenses, including a rise in national insurance contributions under Labour. The mutually-owned group, which operates over 2,300 food stores and 800 funeral homes across the UK, reported losses of £92 million for the six months ending July 4, a figure impacted by £78 million in additional costs. Interim chief executive Kate Allum stated that these cost-cutting measures are necessary to offset higher expenses. The exact number of staff affected across its 54,000-strong workforce remains undisclosed. The company's sales rose 2.4 per cent across the group in the latest half-year, with food store sales increasing by 2.6 per cent. The Co-op is also proceeding with a planned takeover of Southern Co-op, which is currently under investigation by the Competition and Markets Authority due to potential competition concerns in certain local areas.