Co-op to cut 400 jobs as inflation soars in cost of living crisis

CO-OP is slashing hundreds of jobs because of tough trading conditions in the cost of living crisis.

The company said it will cut 400 positions amid “rising inflation“.

Co-op Group is known for its supermarkets, as well as funerals and insurance.

The majority of roles will be cut from the company’s head office in Manchester.

Back office staff in areas like finance, marketing and IT are affected.

Retail staff at its more than 2,000 stores are not affected by the job cuts.

Co-op employs around 63,000 people including 4,000 support staff.

Inflation has soared to 9.4% putting pressure on household budgets. Many people are spending less as costs are rising.

Supermarkets are battling to keep prices down and stay competitive but face higher costs themselves.

Inflation could still go higher this year as experts predict it could hit 11%.

There are fears that soaring costs could hit the economy and plunge the country into recession.

In April, new Co-op Group chief executive Shirine Khoury-Haq revealed that the firm’s annual profits were slashed in half following supply chain disruption and higher costs.

The group said on Friday that it has had to bring forward changes which were originally proposed for next year due to the fragile economic backdrop.

A spokesman for the Co-op said: “At our last set of annual results, we shared that as part of our strategy, making our Co-op more efficient and cost-effective was a priority.

“The tough trading environment, including rising inflation, means we have taken the difficult decision to bring forward some of the changes we had planned for 2023.

“These changes, designed to simplify our approach to business, will sadly mean a number of colleagues in central functions will leave the business.

“We make these changes with a heavy heart, but it is the right thing to do for the long-term health of our Co-op and for all of our members.”